Thinking a new credit card could ease things while you’re under debt review? 😮 The law has a clear answer, and it is not what some lenders will tell you. Enjoy! 🚀
Everything you need is right below ⬇️⬇️⬇️
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No — under Section 88(1) of the National Credit Act, credit providers are legally prohibited from extending you any new credit, including a credit card, while you are under debt review, and any lender that offers you one anyway is acting illegally.
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This article explains exactly why the law blocks new credit during debt review, what can go wrong if you take one anyway, and the safer path to follow instead.
Do not lose time and keep reading to see how it works!
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How Does Debt Review Affect New Credit Applications?
Debt review, also called debt counselling, is a formal process under the National Credit Act that restructures your existing debts into one affordable, court-sanctioned repayment plan.
Once a registered debt counsellor places you under debt review, that status is flagged with the credit bureaus and becomes visible to any credit provider who checks your file.
From that point, Section 88(1) of the Act legally blocks any credit provider from extending you new credit while the flag stays active — this protects you from taking on debt you are already working to escape.
| Legal Rule | What’s Blocked | How the Flag Lifts | Where To Compare |
|---|---|---|---|
| Section 88(1), National Credit Act | Credit cards, loans, store accounts, vehicle finance | Only a debt counsellor’s clearance certificate removes it | Compare safe options for after your clearance |
What You Need to Know Before Considering New Credit
- Any provider who offers you a card without checking your status is breaking the law, not doing you a favour.
- Taking new credit while under review can get your entire debt review terminated by a court or the National Consumer Tribunal.
- Termination removes the legal protection that was stopping creditors from suing you or repossessing.
- Store cards, clothing accounts and vehicle finance all count as “new credit” under the same prohibition.
- Even a small limit or a “just this once” card falls under Section 88(1) — there is no minimum threshold.
- The prohibition exists to protect you from over-indebtedness, not to punish you.
- It stays in place for as long as your debt review flag is active with the bureaus.
- The only lawful way out is a clearance certificate, issued once your restructured debts are paid in full.
- Once cleared, your debt counsellor notifies the bureaus and the flag comes off your credit profile.
Debt review is a rescue path — do not break it for a new card. Once you’re clear, understanding how affordability assessments work will help you apply for the right product the first time.
What Happens If You Take New Credit Anyway While Under Debt Review?
If you accept a credit card while under debt review, you have broken the terms of your restructured plan, even if the card itself seems harmless.
A creditor or your debt counsellor can approach the court or the National Consumer Tribunal to have your debt review terminated once this comes to light.
Once terminated, your original creditors regain the right to pursue you directly, including legal action, without the protection debt review was giving you.
Can a Store Account or Clothing Account Count as New Credit?
Yes. Section 88(1) does not single out credit cards — it covers any new credit agreement, including store cards, clothing accounts, personal loans and vehicle finance.
A retailer offering “interest-free” store credit at the till is still extending credit, and accepting it while under debt review carries the same risk as accepting a bank credit card.
How Do You Get Out of Debt Review So You Can Apply Again?
The only lawful exit is completing your restructured repayment plan and receiving a clearance certificate from your registered debt counsellor.
Your debt counsellor must issue that certificate once you meet the criteria, and is responsible for notifying the credit bureaus so the “under debt review” flag is removed from your file.
Is There Any Exception to the Section 88(1) Rule?
No — the prohibition applies to every registered credit provider for as long as your debt review status is active, with no carve-out for small amounts or short-term credit.
If a lender tells you they can make an exception, that claim itself is a warning sign rather than good news.
⚠️ Be careful with any lender who offers you a credit card while you’re flagged under debt review, or who promises to get that flag removed early for a fee — both are illegal, and both put your legal protection from creditors at risk.
How to Check Your Debt Review Status Before Considering Any Application
Stop guessing about where you stand — a few checks now save you a broken debt review plan and a declined application later.
- Start by confirming your status with a registered credit bureau listed with the National Credit Regulator.
- Contact your registered debt counsellor directly and ask exactly where your restructured plan stands.
- Ask specifically whether a clearance certificate has been issued yet, and if not, what’s still outstanding.
- Check your credit report to confirm whether the “under debt review” flag has actually been removed.
- Only once it’s confirmed removed, start comparing realistic, affordable credit options.
Skipping this check is how well-meaning consumers accidentally undo months of debt review progress for the sake of one card.
If your flag is still active, the safest move is patience — protection from creditors is worth more than short-term access to credit.
Contact the National Credit Regulator
Keep these official numbers on hand if you have questions about your debt review status or your credit record:
- National Credit Regulator (NCR): 0860 627 627
- NCR complaints email: complaints@ncr.org.za
- Credit Ombud (free dispute escalation): 0861 662 837
Is It Ever Worth Trying to Get a Credit Card While Under Debt Review?
No — the short-term relief a new card might offer is never worth the risk of losing the legal protection your debt review plan gives you against creditors.
The one real downside of debt review is that it does feel restrictive while it’s active — you genuinely cannot take on new credit, and that limits flexibility for emergencies.
That restriction, though, is the entire point: it stops your existing debt from growing while you work through a plan you can actually afford.
The better move is understanding exactly where your application would stand once you’re clear, rather than risking the plan itself.
- If you’re wondering why a past application was declined, see: Why Was My Credit Card Application Declined?
- If you’re thinking about applying to several lenders at once, check: How Many Credit Applications Are Too Many?
- If you want a full plan for once you’re ready to apply, follow: The 30-Day Plan Before Applying With Bad Credit
Debt review is a rescue path — do not break it for a new card.
I hope this helped; if you still have a question, leave a comment and we’ll get back to you.
Frequently Asked Questions About Debt Review and Credit Cards
Can I get a credit card while under debt review?
No, Section 88(1) of the National Credit Act prohibits any new credit while your debt review flag is active.
What happens if I accept a credit card anyway?
Your debt review can be terminated, removing your legal protection from creditors.
Do store cards count as new credit under debt review?
Yes, any new credit agreement is covered, including store and clothing accounts.
How do I know when I’m allowed to apply again?
Once your debt counsellor issues a clearance certificate and the bureaus remove the flag from your file.
Can a lender legally offer me credit while I’m under review?
No, any registered credit provider that does so is acting illegally.
Does debt review show on my credit report forever?
No, it’s removed once your debt counsellor confirms your restructured debts are paid off and issues clearance.
Is there a way to speed up getting out of debt review?
Only by completing your restructured repayment plan; no company can legally fast-track this for a fee.
Who do I contact if a lender offers me credit unlawfully?
Report it to the National Credit Regulator on 0860 627 627.
Sources consulted: National Credit Act 34 of 2005, Sections 86-88 (ncr.org.za); Debt Counsellors Association of South Africa (dcasa.co.za); National Credit Regulator public guidance (ncr.org.za).
⚠️ Disclaimer
This is an independent information portal, not officially linked to the National Credit Regulator, any registered debt counsellor, or any bank named in this article. We do not process applications on your behalf or charge any fee for this content. Screens and requirements change over time — always confirm details on the official channels before acting.
