A blacklist is a database that indicates defaulters who haven't paid up their debts within a stipulated time frame given by their lender. When a person’s name is on a blacklist, it simply means the person has defaulted in payment to their creditor. Blacklist is associated with default which is normally referred to as negative information in the credit bureau.
There is a misconception that Credit Bureau databases only contain names of people and entities who have been blacklisted. This is not true for Nigeria. Information in the repository of licensed Credit Bureaus in Nigeria contain information about individuals and companies with a credit history, so as long as they have accessed any credit facilities or products and services on credit in the past and currently. The credit information on your profile can either be negative or positive or both depending on how and when you pay back your loans or postpaid services.
So, what exactly does it mean to have negative information? It means that institutions/credit grantors you may approach will deny you credit because you have a negative report on your credit profile. You may therefore not be able to meet your short or long term needs and may access credit facilities from other lenders at a higher interest rate because you are categorized as high risk. You may also be denied employment opportunities if judgment was taken against you.
If you have been reported with negative information and have paid the debt for which you were listed, you may contact your lender to provide this update to the credit bureau or apply to the credit bureau and request for this update to be done. Either course requires the lender or credit grantor to provide this update to the bureau. The key here is for the update to happen as names are not typically removed from the credit bureau database.
As you take credit facilities or lines, you build a history of performance.
Here's how to clear your name from a Negative Profile;
- Pay your debt:
The first step to clearing your name from being reported as a defaulter is to pay up what you owe. If you are in a financially difficult situation, ensure you contact your lender to discuss payment options that could ease the burden of paying the loan. Choose a payment plan that will work best for you and follow up until you settle your debt. You can also set up automatic payments on the due date to avoid missing a payment.
- clearance certificate/letter of non-indebtedness
Should you have a clearance certificate/letter of non-indebtedness, you can forward the letter to the credit bureau for verification from your lender.
- Contact the Credit Bureau
After a borrower has paid off his/her debt, it is legally obliged of the credit providers to notify the credit bureau that the borrower has paid off his/her debt and request for the borrower’s credit profile to be updated to the current status.
However, you may apply to the credit bureau where you were listed to have your credit profile updated. This can be done by contacting the Bureau via phone/email.
Phone line: +234-807-209-0622
Your email should carry the following details; your Full Name, Phone Number, Bank Verification Number (BVN), gender, evidence of payment and Clearance certificates (if any).
This process might take 2-5 working days to be resolved so do not hesitate to follow up with the Credit Bureau.
Individuals and companies with positive information in their credit files are every lender or credit grantors dream customer, as you are attractive to onboard for their credit products and services. This means you have a history of paying back on or before the due date.
Majority of companies and financial institutions assess their risks on the basis of information provided by the Credit Bureau. If any negative information appears in an applicant’s Credit Report, it is highly improbable that finance will be approved.
This shows how important it is to check your credit reports every year. Your Credit Report provides valuable information about your credit history and behaviour. You are entitled to one free credit report every year so take advantage of that opportunity and step into the world of financial freedom.
Need to know more about your Credit History? Download the CRC Mobile App on all Android and iOS Devices today.