Blacklistings: Why it's important to stay on top of your finances

Relebogile Mabotja interviews Wendy Knowler, Consumer Journalist.

Listen below.

At times, life's challenges can lead to a continuous struggle to keep up with payments.

However, Knowler cautions that companies are legally obliged to report missed payments, which can impact your credit record and signal to other lenders whether it's safe to extend credit to you.

Njabulo Bhembe, Senior Adjudicator for the Credit Division at the new National Financial Ombudsman Scheme, offers insight into the distinction between a credit score and a credit record.

A credit score reflects your payment status and risk level, while a credit record comprises information on accounts with different credit providers and personal details.

Bhembe stresses the importance of regularly checking free credit reports to identify any discrepancies that could hinder future endeavours such as obtaining a phone contract or mortgage.

Unfortunately, he notes that many individuals neglect this resource, leading to potential blacklisting.

"The first [credit report] copy that you get every 12 months will be free of charge."

- Njabulo Bhembe, Senior Adjudicator for the Credit Division – National Financial Ombudsman Scheme

Scroll up to the audio player to listen to the interview.