Have bad credit? Want to avoid being credit blacklisted? Here’s a look at what blacklisting really means, and how to avoid ending up that way. You don’t have to be at the mercy of the credit bureaus!
Ending up with bad credit can be devastating. It makes it hard to open a bank account, get a job, find housing, and live your life. If you’re credit blacklisted, it can feel like the end of the world. Even when you do get credit offered to you, it’s often at incredibly unfavorable rates and under predatory conditions. If you’ve been credit blacklisted accidentally, all this could be happening to you because of a typographical error. Getting your bad credit converted to good credit can be a real priority.
Unfortunately, it’s extremely difficult to clear your name once you’re on a list for bad credit. It doesn’t matter if the blacklisting was accidental, or if you didn’t pay your debt because of a perfectly good reason, such as illness. Even paying back the money right away won’t clear your record. The blacklisting will stick anywhere from three to ten years, and if you haven’t paid the money back by then, you may still run into problems.
Tips for Avoiding the Blacklist
Knowing about the different ways you can be credit blacklisted is an important part of avoiding bad credit. Here’s a look at some of the problem entries your credit record could have.
Adverse listings – Recorded at the credit bureau, these listings remain on the records for three years from the date of listing. They may include bank default listings, collection default listings, and just about any other situation where you owed a lender, company, or other organization, but didn’t end up paying.
Judgement listings – These are recorded in your name if you owed money and they had to get a court order to get you to pay. These include magistrate court listings and high court listings. It’s possible to apply to the court and have the judgement rescinded, but you’ll need a competent legal professional to help you.
Administration orders – These result from being indebted fro a certain amount, and are court ordered just like judgement listings. You pay the debt through an appointed administrator, who distributes your payment to the creditors for you.
Garnishee orders – These happen when your creditors work with your employer. They have money deducted from your salary before you receive it to pay back your debts. These can also be challenged with the help of a good lawyer.
To avoid having your name listed with bad credit, it’s important to pay all monthly bills before the sevent of each month, tell all creditors when you change your address, and pay close attention to legal documents. Make arrangements in advance if you know you won’t be able to pay, and never sign anything without the help of a lawyer.