Will Debt Review Affect My Credit Score in South Africa?

Published April 2026

The fear of damaging your credit record permanently stops many people from applying for debt review — even when debt review is clearly what they need. This fear is understandable, but it is largely based on misunderstanding what actually happens to your credit profile during and after the process.

Here is the honest picture.

What happens to your credit record when you enter debt review

When a registered debt counsellor accepts your application, they notify your credit providers and the major credit bureaus that you are under debt review. The bureaus will flag your profile with a status indicator that shows you are currently in debt review.

This flag has two practical effects:

• You cannot take on new credit while under debt review. No loans, credit cards, or store accounts. This is a legal restriction, not just a bureau issue.
• New lenders can see the flag when they check your credit profile.

This is often described as "blacklisting," but that is misleading. There is no permanent blacklist. The flag exists while you are under debt review and is removed when you exit.

What was your credit score before you applied?

Here is something important that often gets overlooked: if you are genuinely over-indebted — missing payments, making partial payments, or about to miss payments — your credit score is almost certainly already damaged.

Every missed payment gets recorded. Every account in arrears is flagged. Every judgment obtained against you is on your profile. Debt review does not make this worse — in many cases, it stops the damage from continuing.

When you enter debt review and your restructured payment plan is in place, your accounts start reflecting regular, on-time payments — even if those payments are reduced. This actually begins to improve your credit profile over time.

Can you get credit during debt review?

No. While under debt review you cannot apply for new credit. This restriction is built into the National Credit Act and is there to protect you — it prevents you from accumulating more debt while you are working through an existing problem.

This is temporary. Once you complete debt review and receive your Clearance Certificate, the restriction is lifted entirely.

What happens when you complete debt review?

When you have repaid all your restructured debt (or satisfied the court order), your debt counsellor issues a Clearance Certificate (Form 19). This is sent to all credit bureaus, who are legally required to remove the debt review flag from your profile within five business days.

After this point:

• The debt review flag is gone from your credit profile.
• You can apply for credit again.
• Your credit score reflects your payment history over the preceding years — including the period under debt review when you were making consistent, structured payments.

Many people who complete debt review find that their credit score has improved compared to before they entered the process, because they have a period of consistent payment history behind them and no more outstanding arrears.

Debt review vs. doing nothing: the credit score comparison

The worst thing you can do for your long-term credit health is to continue missing payments while hoping the situation resolves itself. That path leads to judgments and adverse listings that outlast the debt review flag.

The question worth asking

If you are genuinely over-indebted, the question is not "will debt review hurt my credit score?" The question is: "what is the least damaging path through this situation and back to financial health?"

For most people who qualify for debt review, the answer is debt review — not because it is painless, but because the alternatives cause longer-lasting and harder-to-recover damage.

Get a free, honest assessment

Reinvent Debt Solutions will give you a straight answer about your situation. If debt review is right for you, we will tell you. If it is not, we will tell you that too.

Get your free debt assessment →

This article is for informational purposes only and does not constitute financial advice. Reinvent Debt Solutions is registered with the National Credit Regulator (NCRDC2264).