What do I do about an arrears level on my accounts?

If your credit report shows that you have an arrears level on accounts, this means that you have missed payments on a credit facility and you are in arrears by the total that you haven’t paid. Fortunately, if you are in arrears it means that no legal action has been taken against you, yet.

How long will my arrears level remain on my credit report?

It’s very important to understand that even once you have paid off the amount outstanding to your creditor, the information will remain on your credit report for up to 5 years. You should still ensure that your credit provider informs the credit bureau that you have paid off the amount outstanding.

What if I only have a recent arrears level or an arrears level on a recently opened account?

If you have a recent arrears level on selected accounts, you should be able to approach your credit provider directly so that you can come to an arrangement with regards to settling your outstanding payments. Going forward, you need to ensure that you are making your credit payments on time. If you feel that you’re at risk of missing a payment, a deferment may be something to consider. A deferment on a credit payment is a plan where you and the credit provider have agreed to a postponed payment. If you are at risk of defaulting on a credit payment, you should get into contact with the credit provider and investigate a deferment before the default happens.

What if I have a high arrears level?

A high arrears level is going to affect your credit rating. You need to remember that it will also affect your ability to get further credit in the future. The easiest and most effective way of clearing your outstanding balance is to try and pay back a little more each week. For example, if you’re meant to be paying R100 towards your weekly repayment, pay R120 if you’re able to. This will help you to reduce your arrears level every week until you’ve paid your current loans in full. There is no reason why you shouldn’t be able lend money from a credit provider in the future. You just need to demonstrate that you can responsibly repay your loans.