Can I Get a Job When I am Blacklisted?

Oct 10, 2019

Being blacklisted can really throw a spanner in the works when you need to make big life decisions like buying a home or a car. No one plans for it, but you also need to plan to not get in debt! Still, it happens, and maybe you need to find ways to pay off your debts. Finding a job is a great start, but will you be able to?

Read on to see how being “blacklisted” will affect your job hunting efforts. Read the fuller picture on what it really means to be blacklisted by reading this article on the myth of being blacklisted.

Not sure whether you are blacklisted? Want to know what the banks and lenders really think of your credit profile? Get your free score by clicking here!

What is Debt?

You probably already know a little about loans and credit cards. Debt comes in many shapes and sizes. Here is a list of the different forms of debt you get in South Africa.

  • Personal loans
  • Credit cards
  • Home loans
  • Car loans
  • Business loans
  • Retail accounts

This is just a short list. There are many other types of credit you can apply for. But you need to understand that anything which requires you to repay someone is a form of credit and lead to the debt you have towards another person or institution.

What is Bad Debt?

Any form of debt has specific payment dates. You need to either repay a portion of the debt. Or you need to settle the debt in full (repay completely). Debt becomes bad debt when you continuously miss payment dates.

It’s human to miss one or two payment dates for a clothing account. Or perhaps you forgot to pay your credit card for this month. Missing payments will decrease your credit score. But miss multiple payments and it will turn into bad debt. Bad debt is a loan or other form of credit that is overdue for payment for an extended time.

What is a Credit Bureau?

There are 4 credit bureaus in South Africa. They track and store financial information about every person living and working here. Every time you apply for a loan it gets logged on your credit report. Any late payments or overdue accounts are also logged on your score.

The 4 largest credit bureaus in South Africa are:

Credit bureaus also keep a credit score for each person to rate their ability to repay loans. But someone who misses multiple payments on an account gets blacklisted by these credit bureaus.

What Does It Mean to Be Blacklisted?

In short, it means that you have been listed by the credit bureaus as someone who struggles to repay debt. You have shown over a consistent period of time that you aren’t able to repay your debts. And as a result, your record is blacklisted.

You won’t be able to apply for any other form of debt in South Africa. Lenders will search your record when you apply and realize that you are blacklisted. Lenders don’t usually offer loans to people who are blacklisted. But that isn’t the only thing it affects.

Not sure whether you are blacklisted? Want to know what the banks and lenders really think of your credit profile? Get your free score by clicking here!

Will Being "Blacklisted" Affect Your Chances to Get a Job?

Many people have struggled with the result of being blacklisted. The effect of a blacklisting does not only affect your applications for new loans. Some professionals like lawyers and attorneys struggle to get a job if they have been blacklisted.

Being blacklisted will decrease your chances to get a new job. Especially when you work through traditional recruitment agencies. They check your credit report before they recommend you to possible employers.Some agencies have denied job applications when people are blacklisted.

But, this doesn’t mean you will be rejected in all cases. You should still do your best to look for ways of generating income.

Is It Possible to Clear Your Name?

Yes it is possible, but you will need to be disciplined and stick to some of these guidelines:

  1. Be responsible and pay off debts.
  2. Wait 5 years for it to clear from your credit report.
  3. Work with the ombudsman if the blacklisting was because of circumstances beyond your control (like retrenchment).

5 years can feel like a long time to wait until you can buy your house, car or get a real job. But, by not doing this, you could see yourself still in debt in 10 years!

Not sure whether you are blacklisted? Want to know what the banks and lenders really think of your credit profile? Get your free score by clicking here!

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