Basically, when someone is blacklisted it means that he or she is put on a list of individuals who may not be allowed certain privileges, such as getting a loan. Reports revealed that there are about 6.5 million people who are currently blacklisted by credit bureaus.
Being blacklisted originated when people became bankrupt and their names were then added to a list kept by neighborhood merchants of people who should be denied credit and other financial services. In historic times being blacklisted was publicly posted and created shame and humiliation for the person.
Until recently, people who were blacklisted still became humiliated because they were consistently denied credit and other loans. There are numerous reasons why people get blacklisted. Most of them have written bad checks or have evaded payments on loans and other credit services. Most blacklisted people are those with bad financial standing.
There are lenders who offer loans, such as payday installment loans, to blacklisted people. This has been the talk of the town because of the boldness of these lenders to offer monetary aid to those credit risky applicants who have bad credit. Payday installment loans for bad credit and blacklisted consumers are designed to lend money even to those who are already have a negative credit standing. Most lenders of these loans only require the borrower to be of legal age (18 years old and 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 urgency and emergency. On the other hand, the disadvantage is paying high interest rates that may incur additional charges when not repaid on time.
But most of the time, lenders look for an applicants creditworthiness, despite having bad credit. This is the reason why many blacklisted people loan applications are not approved. But people who are blacklisted should not despair when disapproved for payday installment loans. This may be a great time to redeem your credit status and may be your opportunity to get more favorable loan terms.
Here are some practical tips that consumers on the blacklist should do 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 at your bank account and may approve your loan application on this basis. Be sure to save prudently because this may be your key to getting approved for your credit applications.
2. Start repairing your credit standing before submitting your loan application. Having a negative mark, or a bad credit report, will take 7 years before getting your credit report clean and impressive. Paying your outstanding loans and other lines of credit on time will 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 the 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 in a timely manner.
Getting approved for a payday installment loan application is possible despite being blacklisted. As long as you can prove to your lender with supporting documents, that you are financially able to repay the loan.