How long after debt review can you buy a car?

While you are under debt review, you cannot legally take new credit, including vehicle finance. Treat any offer of 'car finance for debt review clients' with caution: section 88(1) of the National Credit Act says you must not enter into any further credit agreement (other than a consolidation agreement) once you have applied, and the debt review rules will never apply to a new agreement made in breach.

The safe and proper route is to complete debt review, get your clearance certificate, and only then apply for a car.

Once your debts are paid up:

• Your counsellor issues the Form 19 clearance certificate (within seven days).
• Your counsellor must file a certified copy of the certificate with the credit bureaus within seven days, and each bureau must then expunge the debt review record. Check your credit report and, if the flag is still there, ask your counsellor for the filing date and dispute it with the bureau.

After the flag is gone, lenders no longer see a debt-review status and you can apply for vehicle finance like any other consumer. Do not apply before the flag is removed: the NCR notes that applications are rejected because of the flag, and applications for credit form part of your credit history held by the bureaus.

Removing the flag clears the debt-review status, but lenders still assess:

• Your credit history during and before debt review.
• Your current income and affordability.
• Your payment history, which stays on record for the normal retention periods (the debt review flag and the default information that led to the review must be expunged when the certificate is filed).

So even with the flag gone, you may need to rebuild your profile for a while before you get the best finance terms.

1. Wait until your clearance certificate is issued and confirm the flag is removed on your credit report.
2. Keep your accounts clean - pay any remaining bills on time.
3. Build a small, positive credit history (for example, a modest account paid in full each month).
4. Save a deposit, which lowers the lender's risk and improves your terms.
5. Apply when your affordability is solid, not the day after you finish.

Patience here means cheaper finance and a better chance of approval.