Individuals having a blacklisted credit status usually have a hard time getting approved for traditional loans. There are reports showing that there are approximately 6.5 million US consumers who are currently blacklisted by credit bureaus.
Being blacklisted in the financial community originated when people became bankrupt. Their names were included on a list kept by neighborhood merchants who denied them credit and other financial services. In historic times, being blacklisted was publicly posted which added more shame and humiliation for people experiencing bankruptcy. Today, people who are blacklisted still have that humiliating status. They are consistently denied credit and other traditional loans. There are numerous reasons why people get blacklisted. Some of them have written bad checks or have evaded payment on loans or other services.
Fortunately, blacklisted consumers can now get loans offered by lenders of payday installment loans. These lenders offer monetary aid to credit risky applicants who have bad credit. Payday installment loans for bad credit and blacklisted consumers are designed to lend money to those who are already tagged with a negative credit standing. Most lenders of these loans only require the borrower to of legal age (18 years old or above) and have a source of income capable of repaying the loan when it is due.
However, payday installment loans for bad credit and blacklisted consumers have their pros and cons. The greatest advantage of these loans is having the cash you need in times of emergency because they provide quick loan processing and approval. On the other hand, the disadvantage in getting such loans is paying high interest rates that may incur additional charges when not repaid on time.
Nevertheless, getting payday installment loans is the best shot that blacklisted individuals have. This may be a great way to redeem your credit status by having the opportunity to pay on time, being responsible when handling credit and may pave the way for getting more favorable loan terms in the future.
However there are some things to be considered by blacklisted people to be able to qualify for a payday installment loan and other types of loans:
1. Establish a robust savings or checking account. There are lenders who look into your bank account and may approve your loan application on this basis. Be sure to save prudently because this may be your key for getting approved.
2. Update the list of your payables for the month. Start repairing your credit standing before submitting your loan application. Having a negative mark or a bad credit report, will take 7 years before your credit is repaired. Paying your outstanding loans and other lines of credit on time can be a big help in repairing your bad credit score and establishing a good one.
3. Provide proof that you are capable of paying for a payday installment loan before applying. As mentioned, most lenders look for your capacity to pay and your creditworthiness. Despite being blacklisted due to previous financial delinquencies and having a bad credit score, you can still qualify for a payday installment loan as long as you can prove you can repay the loan.
New opportunities await for blacklisted individuals when they apply for payday installment loans. A blacklisted credit status is not a problem in getting a payday installment loan as long as you can show proof that you are financially able to pay the loan.