Being blacklisted is everyone’s idea of a financial nightmare. Although blacklisted loans can help you out of a difficult financial situation when you have been blacklisted, there are some things you need to know.
Did you know?
Check your credit profile at least once a year – it’s really important. It means you can pick up any fraudulent activity against your identity number and it is a good way of planning for the future. Build the foundation of a good credit history and it will stand you in good stead to borrow in the future.
You should check your credit profiles at least once a year. You are entitled to one free credit report a year from a credit bureau, as according to the National Credit Act.
All you have to do is call one of the credit bureaus. If more than one is needed, a nominal fee is charged.
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What does it mean to be blacklisted?
Blacklisted is an outdated term used by credit bureaus for people that had a ‘messed up’ their credit profile. Today credit bureaus collect ‘positive’ information on people as well as ‘negative’ issues. The ‘good and bad’ feedback helps consumers build up a credit score over time. And these days being blacklisted doesn’t mean that you cannot apply for blacklisted loans.
What is a default?
A default means you are in default of your obligations. In other words, you have failed to make the payment as per your agreement. A default is held on the system at the credit bureau for two years and is then automatically removed.
The action taken is also recorded; handed over, legal action taken or debt written off.
Paying a default account in full does not mean that you are automatically removed from the listing. The lender is obliged to update the information on the credit bureau that the consumer has paid the total amount outstanding.
What is a judgement?
A judgement is a court order requested by the credit provider when you have not paid your debt. The legal process must be followed before a judgement is issued. A judgement is held on the system of the credit bureau for five years and is then automatically removed.
Do you suspect identity fraud?
If you are not happy with information on your credit profile, contact the bureau straight away and report the matter. You will have to provide evidence. If you suspect that someone has opened an account using your identity number and defaulted on payments, you need to ask the credit provider to investigate identity theft.
If they cannot resolve your complaint, you need to lodge a complaint with the credit bureau who will investigate the problem.
If you lose your job
If you lose your job you need to immediately notify your credit provider in writing. Make an arrangement on the payment. And during this time when things get tremendously tough financially, knowing that blacklisted loans are available can give you peace of mind.
Make it work for you
Asking for a free annual credit check means you are on top of what the report contains and you can manage your financial health better. What has passed is history but you need to work towards improving your rating for the future.
Get in contact with your credit providers. They will help you set up a different payment schedule and you can negotiate a more favourable interest rate.
If you ignore a credit problem, it will only get worse. It never hurts to ask for help and it shows a credit provider that you are taking responsibility for your past behaviour.
Remember… pay your bills on time. If you have an overdue bill or an unpaid debt, don’t run away from the problem. Make a plan to pay it off. Set up a budget and stick to it. It will save you a lot of hassle and heartache in the long term. And if you are really in a tricky financial situation you can apply for blacklisted loans though this should be your last resort.
Keep informed and seek help if you are worried about anything. Budget Cash & Cellular will help you through the process and get you back on track with a good credit score.