Today I will be explaining to you how to get your name and BVN removed after being blacklisted by a loan app in Nigeria.
It is possible you may have borrowed instant cash from different loan apps in Nigeria. If you fail to pay back as at when due, regulatory authorities make it possible for lending companies to report your name as a loan defaulter to the credit bureau with veritable evidence. If your name gets included, you may be denied loan access from any loan paa or online or onsite lender in the future.
What Is A Database?
First let us consider the concept of a database as it relates to being blacklisted by a loan app in Nigeria.
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.
What Is Contained in Nigerian Credit Bureau Databases?
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. Your name can also be added after being blacklisted by a loan app In Nigeria.
How Do You Get Blacklisted By A Loan App And What Does It Imply?
So, what exactly does it mean to have negative information? What does it imply to be blacklisted by a loan app in Nigeria or anywhere else for that mattter. 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 after being blacklisted by a loan app in Nigeria or by any financial institution for that matter 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.
How To Know if Your BVN Has Been Blacklisted in Nigeria?
It is possible to know if your BVN has been blacklisted in Nigeria or anywhere else. To do this send a request for credit analysis to any credit reporting company in Nigeria. Once you send the request, the firm will provide you with the bank account details, the amount your account has, and your BVN status online.
It is recommended to use ‘CreditConnection’ to request credit reports online since it is a reliable and free platform to obtain credit reports. In contrast, other credit reporting firms may charge you to provide the information.
When you request reports from a credit reporting company, you may have to pay between N2,000 and N10,000 for each report. Additionally, you may have to open an account to seek out the report.
How Do You Check If Your BVN Has Been Blacklisted?
If you want to check or confirm if your BVN has been blacklisted in Nigeria, you can apply for a credit report if you are certain that loan defaults are the reason for the blacklist. Your BVN can get blacklisted without your knowledge, especially if you default on your loans.
There is a database for people whose bank verification numbers are blacklisted because they weren’t able to pay back their loans. This is also the database lenders refer to before approving loan applications. The credit report is one of the primary criteria to check whether a Nigerian citizen is suitable and eligible for a loan or not.
The credit score shows your creditworthiness to the bank. You will have a better chance of securing any loan if you have a high credit score. If the bank verification number is blacklisted due to loan default, you may not be considered eligible for any type of loan regardless of your good credit score.
To check whether your BVN is blacklisted or not, follow the steps given below:
Online – You can check BVN online by logging in to your internet banking portal. If your BVN is active, it will be displayed on the first page.
9mobile – To check BVN through 9mobile, dial *565*0#
Airtel – To check BVN through Airtel, dial *565*0#
Glo – To check BVN through Glo, dial *565*0#
MTN – To check BVN through MTN, dial *565*0#
How Do You Get Your Name and BVN Cleared after Being Blacklisted?
There are a few steps you can take once you realize your name and BVN have been blacklisted by a loan app and you have been prevented from further access to credit funding in any financial institution. Do the following to be free
1. 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.
2. Obtain a 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.
3. 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.
How Can I Prevent My BVN From Being Blacklisted?
To prevent your BVN from being blacklisted and your name added to be blacklist database, adhere to the following procedures:
- Do not share your bank verification number with anyone.
- Keep your BVN private, and do not share any BVN-related information.
- Memorise your bank verification number so you do not have trouble entering it each time you want to make a transaction.
- Ensure to enter the right bank verification number during transactions.
- Be wary when receiving calls from those who ask for your BVN information since they may be scammers.
- Thoroughly check your account and report any fraudulent activities associated with your bank.
- Use a robust password and an antivirus on your mobile device. With this, you can prevent hackers from getting your personal information.
What is the Customer Service and Support of Credit Bureau in Nigeria
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.
Can you get a loan if you are blacklisted?
This depends on the type of loan you want and your reasons for being blacklisted in the first place. If you are trying to get a personal loan from a bank, then chances are that lenders will deny your application because they will want to know why you were blacklisted in the first place.
How long does it take to be cleared when blacklisted?
Your credit report is a record of your payment behaviour. It tracks all your accounts and indicates where, over a period of two years, you have missed payments or gone into arrears on an account. Then after two years, this adverse information simply disappears.
How do I clear my name from Nigeria Credit Bureau?
Contact the Credit Bureau or send an email to them. 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.
What are the consequences of being blacklisted for a Loan in Nigeria?
The consequences of being blacklisted for a loan in Nigeria are that other financial institutions and loan apps will reject your loan application. In addition, being blacklisted for a loan will negatively affects your credit score which might prevent you from getting any future credit.
How do I check if I am blacklisted?
The information about whether you have been blacklisted for a loan can be found in your credit profile as held by the Major Credit Bureaus in Nigeria. 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. So if you have refused to pay your loan for any reason, your name may have been blacklisted by the lender and included in the list with the relevant credit bureau.
How can I check my credit history in Nigeria?
Every Nigerian is entitled to one free Credit report every year from any registered Nigerian Credit Bureau. To get a free credit report in Nigeria, use any of the following sources: Dial the USSD code *565*8# on your mobile phone to get instant Credit reports from CRC Credit Bureau.
Can I still use my account if my BVN is blacklisted?
If your BVN is blacklisted, it means that you will not be able to access your bank account or make any financial transactions. This can be a huge hassle, especially if you use your bank account to pay for everyday things
What can I do to remove my BVN from blacklist?
With the following steps, you can remove your BVN from the blacklist:
Step 1: Apply For a Credit Report.
Step 2: Repay Your Outstanding Debts.
Step 3: Acquire a Clearance Report or Debt-Free Issuance Letter From the Lender.
Step 4: Connect With the Credit Bureau
How long does your name stay blacklisted?
Once you have been blacklisted you will have a bad credit record for anything from 2 – 5 years, depending on the type of listing and bad credit brought against you. However even after this period of time a judgment can be issued against you if you have not paid the money that you owe.
What happens after you get blacklisted? Effects of having your Bank Verification Number (BVN) blocked in Nigeria?
Blacklisting is intended to deprive a person of the ability to access further loan from any financial institution. The person’s reputation and status will be compromised.
When your Bank Verification Number (BVN) is blacklisted, it can have serious and far reaching consequences. The following are some of the effects of having your BVN blacklisted.
1. Inability To Acquire Loan
The most consequential effect of your BVN been blacklisted is that you cannot apply for, or be granted loans anymore from regulated lenders and licensed loan apps.
Legitimate lenders perform a background check before sanctioning the loan. Your loan application will be rejected if they find out that your BVN is blacklisted. In this case, you may have to resort to applying for a loan from someone who is considered a loan shark. They usually charge a high-interest rate.
2. Limits Your Chances Of Securing A Job
Some corporate companies in Nigeria perform background checks and assess your credit history before hiring you. If your BVN is blacklisted, it will increase your chances of rejection.
These background checks are done in private without letting the applicant know, and if applicants have negative credit, their resume may get denied without citing any cause.
3. Lack of Access To Some Government Benefits
Some government benefits will need you to have an excellent credit score. However, a blacklisted BVN will affect your chances of getting such benefits as this gets in the way of your credit score.
4. May Limit Your Access To Foreign Travel
Obtaining passport and visas may become difficult if not impossible once your BVN has been blacklisted by a lending organisation. Do note that one mandatory demand for visa approval is having a clear financial record which include veritable and functioning BVN. So, if your BVN has been blacklisted, your application for a visa may get rejected.
Embassies favour applicants who are serious about their financial responsibilities. This ensures that the applicant does not become a burden to the country they are entering into.
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.