Have you been blacklisted?
August 12, 2008
Many people are under the impression that they have been blacklisted because of the way that they have conducted their financial affairs in the past.
However, whilst many people may be made to think that they have been or could be blacklisted, and some firms may even send out literature referring to being blacklisted, there is actually no such thing as a blacklist in the UK, and therefore even if you find it hard to get finance it does not mean that you have been blacklisted.
In actual fact, when someone tells you that you have been blacklisted or that you may be blacklisted what they are probably saying is that due to your situation or your financial history you could find it difficult or impossible to get credit for some time to come.
Your ability to get credit will depend on a number of factors and this includes your credit rating, which is generated from the information that is held on your credit file. If you are described as blacklisted this generally means that your credit is in a bad state that this may result in you being unable to get affordable – or sometimes any – credit.
Being unable to get affordable finance can make life difficult, and for many people this is akin to being blacklisted.
This is why people are urged to ensure that they keep their credit in check and that they do not default on repayments or make regular late or missed payments on debts and bills, as this can result in your credit rating plummeting, and can result in you being unable to get any form of finance, or at least not at an affordable rate of interest.
Of course we all rely on credit to some degree in order to finance the things we need in life, and this is why it is important that you do your best to keep your credit in good shape, otherwise you could find yourself unable to get affordable credit.
There are a number of steps that you can take to keep your credit in check or to improve your credit if it has already been damaged, and this means that you are less likely to struggle in the future when it comes to getting low cost finance.
First of all make sure that you order copies of your credit file on a regular basis, as you will be able to see whether there is any information on the credit file that could damage your credit rating. There is all sorts of information that could affect your credit rating and in some cases it could be through no fault of your own that your credit gets damaged.
For example, there may be mistakes that have been made on your credit file, or outdated information on your file, and this could affect your credit rating. You could find that there have been false applications for finance that have been made in your name, so checking your credit report will enable you to determine whether you have been the victim of attempted identity theft, and could potentially reduce the risk of running into huge problems in the future.
There are three main credit referencing agencies that hold credit files and information, and these are the credit agencies that lenders go through when they are thinking of offering you finance. Therefore the information that is on these credit files is the information that potential lenders will see if and when you apply for credit.
The better the state of your credit the more chance you have of getting the finance that you are after. The three main credit referencing agencies operating in the UK are Experian, Equifax, and Call Credit.
With household finances in the state that they are in at present, due to high living costs and below inflation wage rises, many people may already have been struggling with repayments, and this may have already resulted in damage to their credit file.
By maintaining regular and timely payments on your bills and debts you can maintain a good credit rating, or if you have already damaged your credit you can slowly start to rebuild it. Also, remember that if you make a lot of applications for finance in a short space of time, this can also look bad on your credit file, and will leave black marks on your credit file that will not look good.
The more applications for finance that you make in a short period the more likely you are to be rejected. Therefore if you are rejected for finance you should make sure that you wait around three months before you make another application.