Jan 13

How Being Blacklisted May Affect Your Credit

imagesHaving a bad credit score, regardless if it is for reasons behind your control or just past negligence it will affect your financial life negatively.


What will happen when you apply for a loan?

There are several financial lenders catering for the consumer with bad credit as well, however you should be aware of the following.

Higher interest rates: The potential lender will do a thorough analysis of your past credit history. If they see you can afford the loan they may grant you credit  BUT you will be paying a higher interest rate than the person with a good record? The reason – you are considered a high risk client and will first need to proof that you are rehabilitated and only then may become more lenient towards you regarding the amount granted to you as well as the repayment periods.

May not qualify for the amount you are looking for.

You may be offered a small loan only at first. It may be a good idea not turning down this offer,  by accepting the lower offer and then pay regular and on due date will make lenders see that you are trustworthy again, they then may be willing to assist you with the amount you really need after you made a few installments as you now have proven to them that you are determined to keep to your side of the deal.

Will a bad credit history have an influence on renting an apartment?

The answer is most definitely yes. Landlords will be very reluctant to rent a house or flat  to you as they may be afraid you will fall behind with the rent, or even just stop paying them totally.

As it is a very difficult and lengthy process for landlords to evict non-paying tenants in our country they will also check your rent paying history. Although you have to give permission for a credit check to be done on you it is different in the property field. They do have access to a program showing your previous rent paying habits.

No matter what kind of credit you are applying for, whether is for insurance, cell phone contract, store accounts or anything else, and you do not want to give consent for a credit check it will make the red lights flash to the lenders.
Providers assisting with loans for blacklisted people need to do a check to see what other accounts you have so they can see if you will be able to afford the new credit, they then will make a calculated decision based on your monthly commitments.


To apply for credit if needed you can click here.