Here's What Happens Next

Congratulations on settling your debt! But if you're expecting that default to vanish from your credit report immediately, you might be surprised to learn it doesn't work quite that way.

The Reality of Paid Defaults

Under South Africa's National Credit Act, a paid default remains on your credit report for one year from the date of payment. Yes, you read that correctly—paying off your debt doesn't erase the record instantly. However, this is significantly better than an unpaid default, which lingers for five years from the listing date.

What Changes When You Pay?

Once you've settled your debt, the status updates from "outstanding" to "paid." This distinction matters enormously to potential lenders. A paid default shows you've taken responsibility and resolved the issue, which reflects far better on your creditworthiness than an unresolved one.

Protect Yourself: Essential Steps

Always request a paid-up letter or clearance certificate from your creditor. This document is your proof that the debt has been settled in full. Keep it safely filed—you may need it when applying for credit.

Contact the credit bureaus to ensure your account status is correctly updated to "paid." Don't assume this happens automatically.

The Bottom Line

While you can't magically erase accurate credit information, paying your default is a crucial step toward rebuilding your financial reputation. That one-year waiting period gives you time to demonstrate consistent, responsible credit behavior going forward.

Your credit journey doesn't end with payment—it's just entering a new, more positive chapter.

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