What Happens to Your Credit Report During Debt Review?

The thought of your credit report during debt review might feel a little daunting. You might even imagine a giant red stamp across your name. But don’t panic – the truth is debt review isn’t something to fear; it’s a smart, structured solution that helps you breathe again. In fact, it could be your best move yet.

So, what really happens to your credit report when you start the process? Let’s clear the air.

A Flagged Credit Report is Not the End

Yes, your credit report will show that you’re under debt review. The National Credit Act requires that credit bureaus be informed once you enter the process. But this flag is there for your protection. It tells new lenders that you’re taking responsible steps to manage your debt, which means no more reckless borrowing and no more digging deeper into financial trouble.

Think of it like a pause button – it gives you a break from mounting interest rates and lets you reset without fear of legal action or losing your assets.

You’ll Stop Accruing Negative Listings

Once you’re officially under debt review, the chaos begins to settle. Any new defaults, judgements or blacklisting on your profile? They stop.

Why?

Because your creditors are now dealing with your debt counsellor, not with you directly. That means they can’t list additional negative information on your credit report while you’re compliant with your repayment plan.

It’s a line in the sand: no more damage, just forward motion.

Your Score May Dip Initially – But Don’t Let That Deter You

Yes, your credit score might dip when you begin the process. But remember: your credit score is a snapshot, not a full story. And while it may drop short-term, you’re laying the foundation for a much healthier financial future.

As you make consistent, on-time payments under your debt review plan, your behaviour starts painting a new picture, one that reflects commitment, stability and progress.

Post Debt Review, You’re Set for a Fresh Start

When you successfully complete your repayment plan, the flag gets removed from your credit report. You’re issued a clearance certificate and credit bureaus must update your profile. That means lenders will see that you settled your debt responsibly AND that you’re ready to re-enter the credit space with a clean slate.

This is why we say debt review is a positive process. It gives you:

Space to recover.
Time to heal financially.
And the tools to come back stronger.

Debt Review Helps You Take Control

Let’s not forget: your credit report isn’t your enemy. It’s a reflection of your financial habits, and you’re taking steps to improve those. That’s powerful! With a properly managed debt review process (like the one we offer at Zero Debt), your credit journey doesn’t end. It transforms.

Want peace of mind while protecting your assets and improving your credit future? You’re already on the right path.

Rebuild your credit report with the power of debt review today.

FAQs and Answers

1. What happens to my credit report when I start debt review?
Your credit report will show a flag indicating you are under debt review, which protects you from reckless borrowing and further debt problems.

2. Does being under debt review ruin my credit report?
No, it helps prevent new defaults or negative listings while you repay your debt responsibly through a structured plan.

3. Can creditors add more negative listings during debt review?
No. While you are compliant with your repayment plan, creditors cannot add new defaults or judgements.

4. Will my credit score drop when I go under debt review?
Your score may dip slightly at first, but regular payments help you rebuild it over time.

5. How does debt review protect my assets?
Debt review restructures your repayments and stops legal action, helping you keep your home and other valuable assets.

6. What happens to the debt review flag when I finish repaying?
Once you complete your plan, you’ll receive a clearance certificate and the flag is removed from your credit profile.

7. Can I get credit while under debt review?
No, new credit won’t be granted during debt review, but this protects you from taking on more debt.

8. How does debt review help my future credit profile?
It gives you the chance to settle debts, rebuild healthy habits, and start fresh with a cleaner credit report.