It is actually possible to get a loan legally even if you are blacklisted, however, most banks will not actually allow this, but you will be able to find private loan companies that are willing to help.
If you are trying to take a loan and you are blacklisted then you need to know that the terms of the loan will change as your bad credit history will be seen as a risk.
It is not uncommon for people to face financial stress and end up as being blacklisted. If you fall behind on payments your credit history will become bad. If you have a bad credit history and become blacklisted then you will be denied further credit. Also, if you do manage to pay off your debt, this will not mean your blacklisted status will just go away.
You have obviously become blacklisted because you are in debt and not able to pay, but it can also mean that you end up falling deeper into debt, as you will not be able to get a personal loan in order to cover what you owe.
Most forms of credit will become unavailable to people that have bad credit, but there are other places you can get a loan from. You are able to take one of these loans and cover all of your debts and only have the one loan to pay back.
You will need to do your research though if you are looking for a blacklisted loan. You will need to find a reputable and accredited company and compare a few offers so you can find the best one for you. Keep in mind that because of your bad credit, you will pay a higher interest rate.
So…You might be wondering how this works…
How Do Loans for Blacklisted People Work?
There are a number of loan lenders that are willing to help those that are trying to get out of debt. This is because these companies understand that you may have faced a difficult financial time and are still struggling.
If you are in need of a loan when you are blacklisted then you shouldn’t approach a normal bank as you will not be able to get a loan from them. It is very difficult to get approved by a bank because they have a strict criterion, that you probably won’t meet because of your bad credit.
It is a good idea to contact a few lending institutions so that you can look at all your options. Also, loan lenders will offer different rates and will have a different qualifying criterion, so you should compare companies, so you can get the best loan that suits your needs.
However, if your loan application has been denied for whatever reason or you don’t want to have to deal with high interest rates, then here are some other options that you could consider.
Other Options Apart from a Loan
Get a Home Equity Line of Credit
If you own your home and have built enough equity then you might be able to get a low interest line of credit on your home. The money that you receive can be used however you like.
However, the problem with doing this is that you will put your property at risk if you are not able to pay the loan back.
If you have a monthly income that enables you to pay down your line of credit, then this could be an option no matter what credit score you have.
Get a Peer to Peer Loan
Peer to peer loans is a great alternative to the usual loans. You are able to find peer to peer loans online and involves you borrowing money directly from an individual and not a financial institution.
Peer to peer loans have become popular, because they are a streamlined way of borrowing money and the interest rates are relatively low and investors are making more on the interest than they would if they left their money in the bank.
Borrowers will post their loan listings on the P2P site, which includes the amount that they wish to borrow and what the money will be used for. Investors will then go through these listings and choose the ones that they want to be part of.
Lenders will screen applicants and check credit history, but even though your credit score will play a role an individual might be more willing to take the chance and are more sympathetic to your situation than a bank.
Wait…There are a still a few ways more to borrow money…
Borrow Money from Family
If you are still not having any luck then you might need to consider approaching family or friends and ask them for the money.
If you choose to do this then it needs to be handled as loan and correct terms should be drawn up, which is then signed by both parties.
Having a written agreement that stipulates the interest rate, the term of the loan and any collateral that you are using will help to avoid misunderstandings down the road. It should also stipulate what will happen in the event that you are unable to pay the loan back.
However, borrowing money from family or friends can be complicated and it could risk you ruining relationships.
Find a Co-Signer
You could ask a family member or a friend to be your co-signer on a loan. They will need to have good credit score and as long as they trust you to repay the loan, they might be willing to help you. You will have a better chance of getting the loan you need when you have a co-signer, if you are not able to get a loan yourself.
However, if you fail to repay the loan, then the lender will attempt to collect the full amount from your co-signer. Also, the payment history for this loan will show on your credit report and in your co-signers. This could mean that your co-signer will suffer damage because you did not pay the loan.
The only other way that you will be approved for a loan from a bank is to bring up your credit score, however, you do have other options if you are blacklisted or have bad credit.
There are a number of lenders that are willing to help those that are blacklisted and will lend the money that you may need. You should look at these options and find the one with the best interest rate, but keep in mind that this will always be higher than the average that a bank charges. The high interest shows that you are a risk, but you can still get a loan.