A blacklisted person is one displaying a poor credit history, generally due to non-payments, short-payments and late payments. Basically, one or more occurrences whereby an individual fails to satisfy his or her financial obligations are listed by the credit regulatory body. However, the million dollar question is, “Can blacklisted people get a personal loan?”. While higher risk raises the chances of default and lowers the prospects of securing a personal loan, there are guidelines to maximize the chances of success.
Firstly, a client with poor credit may be in a position to pay-off the outstanding amounts. Credit listings can remain on ones records for up to two years at times. Once such an amount is paid-off, it is not cleared immediately. Depending on the extent of the non-payment it may take several weeks and even up to six months to be removed. Such is the case where the creditor has sought legal relief and obtained judgement against the individual. The most important thing here is to retain proof of payment.
Should the individual still not be in a position to settle the default amounts, then an alternative is to contact the creditors and establish a formal settlement agreement. This would be based on agreed terms including affordable monthly repayments. In this instance, one needs to also include written proof of the settlement arrangement, with proof that current payments are up to date, in the application.
The applicant should essentially adopt a transparent approach with a lender. This demonstrates integrity, rather than the creditor establishing undisclosed information via due-diligence. One example is the monthly expense schedule that is typically requested for in order to assess affordability. In many cases individuals do not disclose all their accounts and in most cases such information is easily accessible by credit check processes.
Basically, it is in clients interest to settle as many accounts as possible and avoid new accounts when applying for a loan. This is because despite following the above-mentioned, the lender stills needs to verify the individuals repayment ability. This means there should be a certain proportion of expenses versus income, which also needs to be substantiated. Typically, by general banking principles, existing monthly bills should not exceed sixty percent of the individuals income, for a solid application.
Of-course the client should ensure that his or her application forms are properly completed, together with all supporting information. Affordability can be strengthened via combined applications, where husband and wife both earn an income.
So, we ask the question once again, “Can blacklisted people get a personal loan?”. The answer is yes, the possibility does exist, provided useful guidelines such as those above are diligently followed.