Like many terms related to banking, the “black list” is in our lexicon, and it is well known to everyone that it is almost impossible to get a loan while on the black list.
Well, your loan request was denied by a bank, and as a reason you learned that your credit registry was bad and that you were on the black list. In this case, what are the ways you can get credit, we have investigated this issue for you. But firstly, what is the blacklist and why is it blacklisted, let’s take a look at this part.
– What is a Black List and Why is it entered into the Black List?
There is actually no such thing as a “black list”, whose name is rather scary and disturbing. But every citizen has a financial history and a track record in which payment records are kept. Let’s say that if you have unpaid loans on time or if your credit rating is low due to your irregular payment, you will be called “blacklisted” among the public.
As we mentioned in our previous article, “How Can I Upgrade My Credit Rating”, there is a common pool where banks share all the information about their customers, and the “KBB Score” is calculated and all financial records of the people are transferred to two places through this pool. Both positive and negative information is sent to the credit registry office, while only negative information is transmitted to the Central Bank.
In the sum of all this information, our loan request is accepted or rejected with the score calculated as a matter to you. This is how the so-called “black list” emerges. If your credit score is low, then you can count yourself on the “blacklist” and possibly your credit request will be rejected.
– Can I Get Credits While Blacklisted?
If your credit rating is too low, in other words, if you are in the “black list”, it can be quite difficult to get credit from banks. It should also be noted that each bank may have its own unique credit rating evaluation criteria, keeping in mind that applying for individual loans to each bank will further reduce your credit rating. When you get a negative response from one bank, it is possible to get a positive return to your loan request from another bank. In fact, a bank that rejects your loan request can make a positive return to your loan request, after a while, as it changes its risk-taking policies.
To summarize, when you receive a negative response from a bank due to your low credit rating, you can see the dream “black list” we mentioned, but this does not mean that you will receive a rejection response from other banks. Nevertheless, the best action to be taken at this point is to go out of the blacklist, in other words, to increase the credit rating, rather than applying to all banks at the same time and further reducing your credit rating.
– How Can I Get Blacklisted?
As we mentioned above, getting out of the black list means actually increasing the credit score. Well, what can be done to raise the credit rating, let’s list the item:
As a method to automatically increase your credit rating, you can go to reduce your debt by 30 percent. In other words, when you have a debt of 100 thousand dollars, when you pay 70 thousand dollars of it, it remains like 30 thousand dollars
Most people do not know that this upgraded their credit rating, but requesting a new credit card will automatically upgrade their credit rating. Other credit debts, Remember that paying your debts on time and regularly as well as in the past now affects the credit rating of 15 percent.
4- Do not cancel your credit cards
It is better to leave your credit card open, even if you do not use it, instead of canceling the credit cards that you owe. Because closing your credit cards negatively affects your credit rating.
5- Request additional card
Each additional card you receive for individuals in your family will have a positive reflection on your credit rating.