Many visas have been refused due to indebtedness (those loans you collected without paying fully, haha! you get!) This post will reveal ways to put an end to those errors. Read and share on every family Whatsapp group.
Not only have visas been denied due to this, but I have also seen people losing jobs.
FACT: You can be in debt without taking out a loan.
HOW IS THAT EVEN POSSIBLE? It is possible. When you stand as a guarantor for someone taking out a loan.
So, what is the solution?
A Non-Indebtedness Letter
A Non-Indebtedness Letter confirms that there are no records of any outstanding bad debts, litigation, or registered judgments against the individual in our Credit Bureau database.
Actions that can land you on the BVN blacklist in Nigeria
Below are some of the things that could land you on the BVN Blacklist here in Nigeria.
Loan default: The most popular reason why people get on the blacklist is when they default in repayment to their creditor within the stipulated period. Even if you pay back days or weeks after your term has expired, it can still negatively affect your credit score and land you on the blacklist.
Issuing a dud cheque: Issuing a dud cheque on your account can get you into trouble. Not only will it land you on the BVN blacklist, but it can also get you arrested and prosecuted by the police. Issuing a cheque that you know will bounce due to an insufficient balance in your bank account is simply a bad idea.
Standing as a guarantor for a defaulter: Standing as a guarantor to someone unable to repay their loans can also affect you negatively. You, as the guarantor, might be held liable and unable to secure a loan until they clear their outstanding balance. Do not stand as a guarantor for anyone you’re not absolutely sure can repay their debt obligations.
Effects of BVN blacklist
Your BVN is perhaps one of the most important financial documents in Nigeria and if it is compromised, that can lead to some dire consequences, including but not limited to:
Unable to secure a loan: The most immediate consequence of being on the BVN blacklist is that defaulters will be unable to secure further credits. Most reputable lenders do run a background check on their potential customers to see their credit score. Individuals with outstanding loans usually get rejected during this process.
Unable to get jobs: Some employers do check the credit history of their potential employees, most especially banks and other financial institutions, but they will not consider people with negative credit for employment. These checks are usually done in the background without telling the applicant, applicants with negative credit will just be rejected without being informed of the reason why.
Unable to travel abroad: As getting a visa to travel abroad is becoming more and more stringent, some embassies now include credit history as part of their background check. Embassies prefer immigrants who can handle their financial responsibilities so that they don’t become a burden after travelling. If you are heavily indebted, your visa application might not go smoothly until you clear your record.
Unable to secure some government deals: Certain government deals, like a job with the Nigerian Intelligence Agency or even the CBN, might require applicants to have a spotless credit history. The point is, having your BVN is bad and can deny you plenty of opportunities. Luckily, there is a way to remove your name from the blacklist, even if you are on it.
Steps to remove your BVN from credit bureau blacklist
Request your credit report: You can request your free credit report from any of the credit reporting agencies in Nigeria. We recommend you use CreditConnection – their service is free and seamless. getting a credit report will enable you to see which institutions you are owing to and keep track of your loans. Note that loans from loan sharks and other online loan apps might not appear here if they are unregulated.
Pay your debt: The next step in 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 clearing your debt, your lender is obliged to contact the credit bureau and update your records, but this can sometimes not be done as the process is usually automated.
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.
Helpdesk: https://helpdesk.creditreferencenigeria.net/
Email: support@crccreditbureau.com
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.
list of licensed credit bureaus in Nigeria
A Credit Bureau is a private company licensed by the CBN to keep a database of how individuals and businesses handle their debt obligations. They keep a record of how much loan is being taken and how soon or late the loan is being paid back in order to protect creditors from loan defaulters. Here are the three main credit bureau agencies licensed to operate in Nigeria and their websites.
You can get your free credit report from any of the above. The CBN does not keep a record of the credit reports of Nigerians but outsources them to these private companies, who can show you yours for a fee.
FAQ
What does blacklisting of BVN means?
BVN blacklist means you won’t be able to get a loan from regulated institutions anymore, except from loan sharks, who will charge extremely high-interest rates. If your BVN is blacklisted, it can also affect your chances of getting a good job and travelling abroad if a thorough background check is run on you.
how can I clear myself from being blacklisted?
To clear yourself from the BVN blacklist, these are the things you need to do;
1. Request your credit report from a CBN-licensed credit bureau to know who exactly you are owing.
2. Pay your debt.
3. Get a clearance certificate/letter of non-indebtedness from your lender.
4. Contact Credit Bureau with proof and request that your name is cleared.
Can I change my BVN number online?
No, you cannot. Your BVN contains your biometric records including your fingerprints so it cannot be changed.
Can I have two BVN?
NO, you cannot. because your BVN is secured with your biometric information, it is only one number for every Nigerian citizen.
Is it true that after 7 years your credit record is cleared?
No, your credit record is permanent. your debt can only be cleared after you repaid your loan or you obtain a debt forgiveness.
How long does it take to be removed from CRB blacklist?
You automatically get removed the moment re repaid your loan. You can also send them an email to resolve any dispute, the process might take 2-5 working days to be resolved so do not hesitate to follow up with the Credit Bureau.
How do you know if your BVN has been blacklisted?
check if your BVN has been blacklisted by requesting your credit report for free from any of the credit reporting agencies in Nigeria. You also know that your BVN has been blacklisted when you are getting rejected for loans. Getting very high-interest rate offers on your loan application is also a sign that your BVN has been blacklisted.
What happens if my BVN has been blacklisted?
Blacklisted BVN will lead to your loan applications getting rejected or you will be getting very high-interest rate offers for short periods of loan from creditors that are willing to give you a loan. This is because you’re now deemed as high-risk, and loans to high-risk individuals are more expensive.
How to blacklist BVN?
Only registered creditors and loan providers can blacklist a BVN from getting further loans by submitting the debtor’s details to the credit bureaus.
Can my BVN be blacklisted?
Yes, your BVN can be blacklisted if you are unable to settle your loan obligations during the stipulated tenor. Some creditors do give a grace period after which they will report your BVN to Credit Bureaus and stop you from getting further loans. A reported BVN can also have other consequences including blocking your ability to travel or get certain jobs and government contracts that require a financial background check.
Now that you have seen solution to clear your name from BVN Blacklist, kindly share for people to be saved.
