Everyone has heard of the term “blacklisted” before. Many consumers think that they are on the list. Being on the Blacklist is commonly mistaken for a formal and controlled mark on a consumers credit report which prevents them from taking out further debt. This is not entirely true and there are no strict, hard and fast rules to becoming blacklisted.

So, what does blacklisted mean and how does it work?

An actual list of blacklisted consumers does not exist. One cannot look at a credit report and say that a person is blacklisted – this is not how it works. Your credit history and credit score determines whether you can take out more debt.

If you have a low credit score and bad credit history and cannot take out more debt you are known as being on the blacklist. A credit score could be low for a number of reasons, these could include:

  • Missing debt repayments
  • Missing cellphone contract payments
  • Having too much debt
  • Failing to pay back arrears
  • Legal action

If you think you are blacklisted, this is what you should do

Consumers think they are blacklisted when they are unable to take out any more loans, when actually they just fail to meet the minimum criteria to take a loan for a credit provider.

There are a number of remedies of consumers who have low credit scores and are unable to take out more debt. If you cannot get any loans or use more credit you must try to improve your credit status. If one cannot get any more debt because they currently have too much debt it is not wise to try get another loan as this will make the problem worse, not better. Often consumers think that a consolidation loan is the answer to debt problems, but these only work in specific situations.

Click here to see what Transunion – South Africa has to say about being blacklisted in South Africa.

If a consumer is struggling to pay their debt back and this is causing stress and anxiety, we recommend speaking to a debt counsellor. Not sure how to choose the right debt counsellor? Read This.

How can a debt counsellor help you?

A debt counsellor will draw credit reports and give advice on ways to improve ones credit score. A consumer may need some budgeting advice, but maybe they need a solution that will help them get out of debt, such as debt counselling. In 2007, debt counselling was designed to help over-indebted consumers get out of debt. Read 4 common misconceptions about debt counselling to help get a better understanding of the process.

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An experienced consultant will contact you to understand your financial situation. We can then recommend the best options to get you out of debt quickly and affordably. In addition, you will get a free credit report & financial health report.