A lot of people do not realize how bad their credit situation is until it is too late. Being credit blacklisted can be very devastating to your financial situation, especially when you are trying to acquire loans or financing on a specific personal or business need. Authorized lending institutions can put you on the blacklist because of unsettled loans, thus making it extra difficult to acquire financing. Even a seemingly insignificant missed payment on a credit card from many years ago can cause you to get blacklisted and inhibit your chances and ability to get approved for a loan. If you are not sure where you stand as far as your credit difficulty, here are some questions you need to ask yourself:

€ Am I usually late with monthly dues (telephone bills, utilities, etc.)?
€ Will I be in an immediate financial difficulty if I am suddenly out of a job?
€ Am I receiving frequent calls from lenders and banks because of outstanding payments?
€ Have I started to withdraw money from fixed accounts (university fund, retirement fund, etc.) to make ends meet and settle outstanding
€ Do I miss regular health assessments (medical appointments, dental visits, etc.) because I cannot afford them?
€ Do I pay my credit card on budget payment option?
€ Do I regularly use cash advances to settle outstanding payments?

If you answered yes to several of these questions, then you are most probably in a financial rut. This said, filing for bankruptcy should not be your immediate answer, especially when there are other options that you can take to get you out of your financial difficulty. While bankruptcy may seem to be an easy way out, it can also mean difficulties in getting future loans and trouble acquiring credit because of high interest rates. Bankruptcy records can also stay on your history for up to 10 years.

You can get blacklisted by loan providers if you have ever borrowed money in the past and failed to settle your payments. The credit that you owe can be red-flagged because of late or missed payments, thus inhibiting your chances of being granted for more credit. However, you can get out of creditor blacklists by repairing your credit history. Lenders often review your credit and payment history before giving you approval for additional credit. Once you have consolidated your previous debts, your chances of obtaining additional loan will be greatly improved.

Bad credit history does not necessarily mean that you will be classed as a delinquent or unreliable debtor the rest of your life. Missed payments are often kept on your record for at least 3 years if you are unable to rectify them. However, your credit rating can change over time as your circumstances change and with better management of your credits and finances, previously bad credit scores can be improved.

Agencies that keep your credit history do not make the decision whether or not you qualify or are blacklisted for a loan. They simply collect, assemble, and present information available to them in your credit report so registered and approved organizations like banks, finance companies, and loan providers can access them. These organizations (lenders) are the ones who decide to decline or approve your loan application, or put you on their blacklist because of delinquencies.

If you are struggling with your loan application and credit blacklist status, seek the help and advice of financial and loan experts who can help you get back on your feet, fix your credit scores, and find ways to get you the loan approvals you need.