You are referred to as ‘blacklisted’ if you have fallen behind on your credit repayments for three months or more. As a result, credit providers inform the credit bureaus, who then list you as a high-risk credit user. Furthermore, attorneys who have obtained a judgment against you also notify the credit bureaus and this reflects negatively on your credit record. If you have been blacklisted, it is unlikely you will qualify for anymore credit as your bad credit profile will reflect the negative listings you have received.
The approval of your application for a blacklisted loan will depend on the type of loan you are applying for, the amount you wish to receive and the lender you choose to approach. Your chances of approval are better if the purpose of the loan is to pay off or consolidate your existing debt. However, if you intend to use the loan for personal purposes like building a lavish home or buying a costly vehicle, credit providers aren’t likely to grant you such an extravagant loan, given that you already have an unreliable track record. How do I check if I’m blacklisted?
You can get a copy of your credit record from either one of South Africa’s two largest consumer credit bureaus, TransUnion or Experian. It is advisable to check with both of these bureaus as to what listings they have under your credit profile, as the information they hold on you may slightly differ.