There are plenty of people who use credit every day. There are some that only use it for cars and houses; others use credit for furniture and clothes and some use credit for their day-to-day purchases.
If you are someone that uses credit then you will be familiar with the term blacklisting. So what does it mean to be blacklisted?
There is not some sort of list that has everyone’s name on who has been blacklisted, but it is a term that isn’t officially used by credit providers.
The term blacklisted means that your credit provider has negative information about you, which may stop you from getting credit in the future.
The negative information that they have may indicate that you have missed a payment or that you are late with paying for something. This though can grow and it could mean that you end up in court, being prosecuted for not paying your debts.
If you have been blacklisted then you are most likely not able to get credit from a traditional financial institution like a bank. You may also find that you are denied access to business financing and any other credit from a credit card provider. The worst part though of being blacklisted is that you may find it hard to get a job. There are many employees that will not hire anyone that has been blacklisted or has filed for insolvency.
As there are severe consequences of being blacklisted, it is important that you do not get reported to the credit bureaus for being a bad payer. There are ways that you can avoid being blacklisted. Here is how you can stay on the good side of your creditors.
All your installments that you have agreed on should be paid and on time. If you are unable to pay on time then you should inform your creditors.
You need to speak to your creditors openly and honestly. If you are not able to make your payment on time, then call your creditors and tell them about it. Creditors are sometimes willing to give an extension or allow a late payment on occasion if you usually pay all your payments on time.
If you find that you are struggling to pay your current debt, then do not take on any more debt.
It is also a good idea to limit your lifestyle and try and spend less.