How could one clear ones credit record?

First thing that is needed is a rescission of the judgement that resulted in the credit listing and must be obtained from the courts. To start the process, first establish the reason for the judgement as it may influence the claims which have to be made in an affidavit accompanying an application for the rescission.

Judgements can be obtained in two ways, either by default, which means the action was instituted against the debtor who failed to defend the matter, or due to the process where the matter was unsuccessfully opposed by the debtor.

Collection attorneys offer a service whereby they apply for a rescission of judgement that they have obtained against a debtor and where the debt has been settled.

A rescission application can be brought on the grounds that the judgment debt was settled or that the judgement was wrongfully obtained. This application must be accompanied by an affidavit wherein the debtor states his request and reasons for the rescission. The application is served upon the judgement creditor or his representative and filed at court for consideration.

After the judgement is rescinded, the rescission order must be sent to Trans Union together with the relevant forms in order for them to remove the judgement against the debtor. This could take up to 20 working days.

As banks have tightened up their lending criteria it is important to know your credit status and be in control of it, especially when it comes to applying for a home loan. Banks are even more cautious now than what they were a few years ago.

If during the last six months you skipped a payment on any of your accounts, for instance even on a clothing account, your chances of obtaining a 100% loan will drop to nil. A few years ago you would still have been eligible for receiving mortgage finance. In the case were you have missed a payment, you will have to wait another six months before you are able to apply for a home loan. This means the odds are that you will lose out on that home you were looking to buy and will have to settle for something less," says Sandy Reddy, head of origination at EV Finance.

She also noted that the process of applying for a rescission is a lengthy and costly one and being black listed carries more repercussions than not being able to obtain any credit.