Can You Get Credit While Under Debt Review?
Consumers who are formally under debt review generally cannot take out additional credit while the debt-review process remains active. This restriction is intended to prevent additional borrowing while existing debt is being restructured and repaid. It is a protective feature of the process, not a punishment.
Key Points
- New credit is generally not available while you are under debt review.
- The restriction is a protective measure under the National Credit Act.
- The restriction ends when your clearance certificate is issued and processed.
- Any lender offering credit during debt review may be acting unlawfully.
Why can't you get credit during debt review?
When you enter debt review, credit bureaux record a flag against your profile. Under the National Credit Act, registered credit providers are legally prohibited from extending new credit to a consumer who is under an active debt-review process.
The purpose is to stop the cycle of borrowing from one creditor to pay another. While you restructure and repay existing debt, taking on new credit would undermine the affordability of your repayment plan.
What about store cards, overdrafts or vehicle finance?
The restriction applies broadly to new credit agreements, including personal loans, credit cards, store accounts, overdrafts and vehicle finance. Existing accounts included in your debt review are restructured, not closed and reopened.
If you already have a vehicle or home loan included in the review, you continue paying the restructured instalment; you cannot, however, apply for an additional loan while the flag is active.
What should you do if someone offers you credit?
Be cautious. A registered credit provider that extends credit to a consumer they know is under debt review may be acting recklessly. Unregistered lenders operate outside the law and should be avoided entirely.
If you are offered credit during debt review, speak to your debt counsellor before accepting anything. Accepting new credit can place your restructuring at risk.
When does the restriction end?
Once your qualifying debts are settled and your debt counsellor issues a Form 19 clearance certificate, the flag is removed from your credit profile. After the bureaux process the certificate, you may apply for credit again, subject to normal affordability assessments.
Rebuilding gradually — starting with a small, well-managed account — is usually the most effective way to restore a strong credit profile.
Frequently Asked Questions
Worried That Your Debt Has Become Unaffordable?
Debt Guidance can assess your income, essential expenses and debt commitments to determine whether debt review may be appropriate.
Reviewed by Carolina Guevara Harris
Registered Debt Counsellor · NCRDC3152
Last updated: 17 September 2025
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