The Possibility of Getting Blacklisted
The first thing you need to know about getting blacklisted is, there isn’t a real blacklist.
Getting blacklisted refers to the state of your credit history, which is stored in one of a few systems in a country. The information within this system is referred to as a credit reference file, as well as a credit report.
When you apply for any credit, it doesn’t matter whether it’s big or small, your credit report is the first thing to be reviewed to check whether you qualify for the credit you’re applying for.
With this information, creditors will decide on whether or not they will allow you to lend it. Credit reference agencies will also aid in helping credit reference agencies to determine whether you can qualify for credit.
Any information or data regarding your credit, such as your record of making payments, as well as a lack thereof, will also determine whether you can obtain more credit.
The same process is carried out by landlords before allowing you to lease property or a potential employer, especially in business or finance industries.
Blacklisting and Bad Credit Scores
You can be blacklisted if found that you fail to pay your accounts or creditors for a period, without presenting your creditors with a solution for paying them back.
There are many ways to deal with debt. These include everything from debt management plans to administration order, as well as debt-relief orders, individual voluntary arrangements and filing for bankruptcy in severe cases.
Getting blacklisted, only occurs in situations where the individual that owes creditors money, does not comply with payments, terms and conditions or find a method of paying these creditors back.
Before getting blacklisted, you can present your creditors with a notice of correction that will inform creditors that they should consider specific factors or events that allowed you not to be able to adhere to making payments.
Notice corrections can be of great help when being faced with the possibility of being blacklisted.
Need help with blacklisting or credit score? Credit Matters can assist with all of your debt counselling needs.