How to Check if you are Blacklisted for a Loan?

Are you in need of a loan and are currently blacklisted? We offer information on how to attain a loan despite your blacklisted status. What are the means by which individuals become blacklisted as well as where they may review their blacklisted status online? The steps to getting a loan if blacklisted and what are the possible loan options for those seeking an immediate loan?

What is it to be blacklisted?

For those unfamiliar with the term “Blacklisted”. This term is to classify individuals who default on several repayments to credit providers. With any credit provider, they report those who fail to honor their repayments to a credit bureau to such a degree that they are no longer able to qualify for additional credit. The credit bureau informs other credit providers or lenders of your credit rating and overall risk. The result of this is a poor credit history.

Consequentially, credit providers use this to gauge the risk associated with the individual. Your credit rating will also indicate the credit options they offer will offer you. This Term is for individuals who have made more than several faults within their payment history. Additionally, they may be denied any form of credit possibly in the future. Such individuals will have a long road ahead in fixing their credit and raising their credit rating.

Your credit rating when blacklisted

Credit providers will always perform a credit check before they offer any form of credit. This risk assessment will establish to lenders whether the individual can repay the loan. Additionally, the amounts, interest rates, and terms are based on your current credit rating. This information is widely available to credit providers through information from credit bureaus. These companies may then make a calculated decision as to your repayment history.

The use of your credit rating when blacklisted is indicated on your repayment history as negative. Those who default numerous times with their payments in the past may be denied loans in the future. Consequentially, this damage to their credit history may take a considerable amount of time to change to be liable for any form of credit.

Those who repay their monthly installments timely each month indicate to credit providers that they are responsible for their finances. As a result, your credit score is a lower risk to lenders. They alternatively will review your potential loan application more favorably.

Those with a credit rating that is reasonably respectable are usually subject to lower interest rates and loan terms. Comparatively, those with a lower rating are more likely to be denied and be subject to higher interest rates. Those who miss or fail to repay their installments on time will negatively affect their credit score.

Where to check your status when blacklisted for a loan?

Credit bureaus keep track of your credit history, including any negative data that indicates missed or late payments, and especially a record of individuals who are blacklisted. Once blacklisted you will lower your chances of future or potential finance options. The process to check your blacklisted status is fairly forward and easily accessible.

Individuals are usually entitled to one free credit report each year. These are numerous online sources that can inform users of their status and additionally their credit rating. Alternatively, other sources to inquire about their status can be done so over the phone. Certain credit bureaus make use of SMS service for those seeking their blacklisted or credit status.

Free online sources to review your blacklisted status

TransUnion

To view your free yearly credit report through Transunion, go to their website. Transunion additionally has an SMS system for those to check their credit status and if they have potentially been blacklisted. Use and dial the following SMS USSD code *120*8801# from your cellphone. Though this service will require users to register and pay a small nominal fee.

CreditBureau

For those seeking to cross-check multiple credit reports, CreditBureau makes use of multiple sources. This is the most accurate means for blacklisted individuals to lodge disputes if they note any irregularities in their credit reports. With the use of four of South Africa’s leading credit bureaus, credit reviews are simplified to review to lodge disputes.

Kudough

A free online credit report source to establish your possible blacklisted status. Additionally, Kudough offers its individuals financial advice based on their current financial circumstances as well as blacklisted status.

Experian

For those seeking a user-friendly, simple, and yet accurate means to review their credit or blacklisted status. Their online services namely the “My Credit Check” and “My Credit Expert” portals are an excellent choice.

The importance of a credit report

Those who review their finances through the use of a credit report may find there is a possibility of the data being incorrect. Which consequentially leads to a poor credit score or blacklisting. To check for any errors cross check reports from alternative credit bureaus.

Staying on top of your finances and understanding your credit report to lodge any potential disputes in the event of such an error. Especially, those who are seeking to attain credit may be subject to higher interest rates and terms that are less favorable due to the data being incorrect. Certain jobs will access potential employees’ credit records and may deny those who have been blacklisted.

» Find out more: What to Do When Your Loan is Declined

Options for those blacklisted for a loan

Regarding a loan, those with a blacklisted status may find it rather difficult to apply for a loan. Traditional credit providers will refuse to offer any form of a credit to those with a poor repayment history. However, it is not entirely impossible to acquire a loan despite being blacklisted. Those who have been blacklisted can make use of a secure loan.

This form of a loan is where the blacklisted individual will use some form of collateral or valued asset to acquire a loan. In the event that users fail to repay the credit provider, they may then repossess the assets to cover any potential loss. Though with this option it is important to note that the interest rate may possibly be lower than that of a traditional loan.

Before applying for such a loan users should review their credit report if there are any errors or potential disputes. An error as such may influence one’s ability to apply for potential loans as well as the interest rate and terms.