Rebuilding Credit After Debt Review: Steps to Re-establish a Positive Financial Profile

Navigating the turbulent waters of debt can be a challenging journey, but debt review offers a guiding light for many. However, what comes after successfully completing the debt review process? At FinFix, we understand that regaining a strong financial profile is essential, and rebuilding credit is a significant part of this journey. Let's explore some steps you can undertake to re-establish a positive credit standing post-debt review.

1. Understand the Debt Review Mark on Your Credit Report:
Upon successful completion of the debt review process, the credit bureaus will be notified, and the debt review status will be removed from your profile. It's essential to know that while the debt review remark is removed, the payment history during the debt review remains. Being informed allows you to set realistic expectations and strategise effectively.

2. Start with a Clean Slate:
Once you're debt-free, it's crucial to ensure you do not slip back into old habits. Budget diligently, save consistently, and make sure you live within your means.

3. Obtain a Secured Credit Card:
Post debt review, obtaining traditional credit might be challenging. A secured credit card, which requires a deposit as collateral, can be a useful tool. Regularly using and paying off this card can demonstrate responsible credit usage and aid in rebuilding your credit score.

4. Diversify Credit Types:
Over time, consider taking different types of credit, such as retail accounts or personal loans, but always within your means. Diverse credit types, when managed well, can positively impact your credit score.

5. Make Timely Payments:
One of the most influential factors for your credit score is timely payments. Ensuring that all bills, whether related to credit or not, are paid on time is paramount.

6. Regularly Monitor Your Credit Report:
Stay informed about your credit standing. Obtain your free annual credit report and check it for errors. Any discrepancies should be flagged and rectified immediately.

7. Limit Credit Inquiries:
Each time a potential creditor checks your credit, it leaves a mark. Too many inquiries in a short period can negatively impact your score. Only apply for credit when necessary.

8. Consider Debt Counselling:
Even after debt review, continuing with debt counselling can provide guidance on managing finances effectively. Professional counsellors can offer insights on budgeting, saving, and using credit wisely.

9. Be Patient:
Rebuilding credit is a marathon, not a sprint. While some improvements can be seen relatively quickly, others might take time. Stay committed to good financial habits, and over time, your efforts will be rewarded.

10. Educate Yourself:
Stay updated with the latest financial literacy resources. Being informed about the dynamics of credit, interest, and the broader financial landscape can aid in making sound decisions.

Emerging from debt review presents a unique opportunity – a chance to rebuild and re-establish a positive financial profile. While the road might seem long, with patience, discipline, and the right strategies, achieving a healthy credit score is within reach.

At FinFix, we are dedicated to guiding South Africans on their journey to a debt-free life. Whether you are in the midst of a debt review, seeking debt relief, or looking to understand consolidation better, our team is here to assist every step of the way.

Note: This article aims to provide general insights into rebuilding credit after debt review and does not constitute direct financial advice. For tailored guidance based on your unique situation, it's always best to consult with a professional.

All Rights Reserved Ⓒ 2022 | FinFix Shared Services (Pty) Ltd trading as FinFix is registered with the NCR (NCRDC3062).

Website developed by TheFirstPage

Privacy policy / POPIA compliant. FinFix will not share any information with any unauthorized parties nor use the information supplied by consumers other than the intended purpose. Consumers who supply FinFix consultants with personal identification information consent and authorise FinFix to obtain said consumers full credit record from any/all registered credit bureaus and any other registers that may contain any of users credit information. Consumers also authorise FinFix to store their credit and account information in their system for as long as it may be necessary, in order to perform the functions as envisioned through Section 86 of the National Credit Act.