BVN Blacklisting in Nigeria - Everything You Need to Know
When you open a bank account in Nigeria to take loans, it's crucial to repay all the incurred debts, or your BVN will get blacklisted. Read this post to learn all about BVN and how to know whether your bank verification number is blacklisted or not.
Bank verification number (BVN) refers to a unique number assigned to all Nigerian citizens carrying out financial transactions in the country. It's imperative to check your BVN status before undertaking any financial transactions in Nigeria.
You also need to learn whether your BVN is blacklisted. If your BVN is blacklisted, you cannot use your bank account to make any transactions. A BVN number is an 11-digit number which will be your virtual ID as you access your bank account.
The BVN number is linked to your biometric data. Hence, you will and can only have one Bank Verification Number. If you run into issues or fail to repay your debts, your BVN number may get blacklisted. A blacklisted BVN will prevent you from taking any loans from the bank and even may prevent you from securing a job or leaving Nigeria.
How to know if your BVN is blacklisted in Nigeria? This post will answer all your queries and tell you how you can prevent your BVN from getting blacklisted as well as the reasons why it may get blacklisted.
What is a BVN?
A BVN is an identifier allotted to all bank account holders in Nigeria. The BVN number helps banks thwart money laundering and combat fraudulent activities.
When a BVN number is blacklisted, it indicates that your financial institution has flagged and correlated your bank account with suspicious activity. The types of criminal activities can range from terrorist financing to money laundering.
Another reason why the Central Bank of Nigeria, or CBN, may blacklist you is that you may not have paid your financial debts within the given timeframe or have acquired negative credit in your bank account. Hence, if you secure a loan from a bank in Nigeria and fail to repay the loan, your bank verification number may get blacklisted.
BVN blacklisting reduces the chances of illegal banking transactions. It also helps and enhances national financial intelligence. It enables the Nigerian government to protect bank account holders' interests and enhance their confidence in the banking system, which in turn boosts the financial standing of Nigerian financial institutions.
Customers are more likely to opt for banking services when they get the assurance of safe transactions. A bank verification number offers many chances to protect the whole financial system.
What is Blacklisting?
Once your bank verification number is blacklisted, you will not have any control over your finances. This can occur due to several instances; however, the most common cause of blacklisting is loan default. Now you may wonder, "how to know if your BVN is blacklisted in Nigeria?"
The best way to check if a person is blacklisted is to analyse the database, as it contains the bank verification numbers blacklisted in Nigeria. You can do so by visiting the official website of the National Identity Management Commission.
Most people believe that bureau databases have the names of those who are blacklisted. However, it is not the case in Nigeria. Nigerian credit bureaus preserve information and details about companies and people with credit histories as they have access to credit facilities and services.
If your bank verification number is on the list of blacklisted BVNs in Nigeria, do not fret, as there are several ways you can get it back. Before we move on and tell you how you can get back your BVN online, it is necessary for you to learn why it may get blacklisted.
Why Can Your BVN be Blacklisted?
There are several reasons for your bank verification number to get blacklisted. For instance, if you are reported for suspicious activities or haven't repaid your loan, your BVN may get blacklisted.
The following are key reasons why BVNs get blacklisted:
- Failing To Repay The Loan: This is one of the common reasons for a BVN getting blacklisted. If you default on your loan, the financial institution will add your bank verification number to the blacklist. Even if you pay the due amount within days or weeks of the due date, it will affect your credit history and leave you prone to blacklisting.
- Standing as the Guarantor Defaulter: If you volunteer as the guarantor for someone who hasn't repaid their loan, it will also affect you negatively. You will be held liable and may not secure any loan until they have cleared their pending loans. You should not become the guarantor for someone who is unsure whether they can repay their debt timely or not.
- Someone Else Utilising Your Banking Details To Borrow: When you don't protect your personal information, fraudsters can hijack your personal details and use them to secure loans by pretending to be you. Hence, you can get blacklisted without doing anything wrong.
- Issuing Dud Cheques: You can get in trouble by issuing a dud cheque for your account. Not only will it leave your BVN on the blacklist, but it can potentially get you arrested. Issuing the cheque for an amount higher than your actual bank amount is not a good idea.
- If The CBN Put You On Watchlist: The Central Bank Of Nigeria monitors all bank accounts. Once the account transactions are breached or suspicious money enters your account, you may be put on the watchlist. If the CBN has enough reasons to believe that your account is used for unlawful transactions, it may put your BVN on the blacklist.
The Consequences Of Having A Blacklisted BVN
When your bank verification number is blacklisted, it can cause serious repercussions. The following are the ramifications of your bank verification number getting blacklisted.
Inability To Acquire Loan
The most major BVN blacklisting consequence is that you cannot apply for more loans from regulated lenders.
Genuine 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.
Affects Your Chances Of Securing A Job
Some leading 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.
Foreign Travel Might Become a Distant Dream
Obtaining visas is becoming more challenging with each passing day. One mandatory demand for visa approval is having a clear financial record. So, if your BVN is 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.
If your BNV is blacklisted, the visa process may not go as smoothly until your financial records become normal again.
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.
How to Know if Your BVN is Blacklisted in Nigeria? The Process
To know whether your BVN is blacklisted, you can 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 1000 Naira and 8000 Naira for each report. Additionally, you may have to open an account to seek out the report.
Now that you know the answer to the question, "how to know if your BVN is blacklisted in Nigeria?," let's move on to learn how you can get your BVN back.
How Can I Get My BVN Removed from the Blacklist?
Do not worry or get anxious if your bank verification number is blacklisted. With the following steps, you can remove your BVN from the blacklist:
Step 1: Apply For a Credit Report
The initial step to getting your BVN back is sending a request to Nigeria's credit reporting company. The credit analysis report will explain why your BVN was blacklisted, your owned bank account, and details of the disputed amount.
However, your financial details may not show in the credit report if you have an unregulated bank account since only regulated banks' details are captured.
Step 2: Repay Your Pending Debts
After getting your credit analysis report, you should repay all your pending debts. You should also connect with your banking institution or loan provider and opt for the most appropriate repayment plan for yourself.
To ease the process, you can also go for automatic payment and free yourself from the hassle of remembering when to pay.
If you are serious about repaying the loan, you can have a meeting with the credit institution and request them to offer you an affordable repayment plan.
After choosing the right repayment plan, follow it and keep up with the plan. Pay at the given time and stick to the schedule until all your debts are cleared.
Step 3: Acquire a Clearance Report or Debt-Free Issuance Letter From the Lender
After clearing all your debts, you should get a non-indebtedness letter and send it to your credit company for verification. The credit bureau will investigate independently and coordinate with your bank to remove your name from the list of debtors.
This is a crucial step since developed countries use credit scores to determine creditworthiness. Moreover, the Nigerian government also keeps an eye on the credit bureaus to check their citizens' creditworthiness.
Step 4: Connect With the Credit Bureau
After settling your pending debt, the lender will work with the credit reporting company and update the details. However, this is an automatic process.
Alternatively, sending your application to the bureau will help you update the financial details. You can also connect with the bureau via phone or email.
You should have your BVN, name, phone number, payment evidence, and gender on your application. It may take several days for your profile to become updated and pull your BVN out of the blacklist.
Most banks calculate their risks based on the information offered by credit bureaus. In case there is any negative information on your credit report, your credit requests are likely to get rejected. This showcases the significance of checking your credit report each year.
Your credit report will offer valuable information regarding your credit history. Once every year, you can check your credit report for free, so you should benefit from this opportunity and get more familiar with the process.
How Can I Prevent My BVN From Being Blacklisted?
The following are some of the methods and practices which you should follow to prevent your BVN from being blacklisted:
- 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.
How Do I Check If My BVN Is Blacklisted?
If you are wondering how to know if your BVN is 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#
Can A Loan App Blacklist BVNs?
Yes. Loan companies and loan apps can cause your BVN to get blacklisted. It is possible since the Central Bank Of Nigeria provides all the regulated financial, loan-giving, and credit establishments with the authority to mark loan defaulters.
Institutions, from loan apps to banks, can take up the cases of customers who do not pay back their loans or follow the repayment schedule of the collected loans.
Loan apps usually mark loan defaulters by giving defaulters' reports to the bureau. The bureau will research the case to see whether the report is authentic. If the report turns out to be true, the bureau in Nigeria will add the defaulter to their database.
If your BVN has been included in the blacklist, all credit-giving companies and financial institutions will reject your loan application. Hence, you must repay all your debts on time and maintain a good credit score.
This guide elaborates on the process of checking whether your BVN has been blacklisted or not. It is necessary to check if a person is blacklisted in case they cannot secure a loan or frequently gets rejected from job opportunities.
Make sure to repay all your debts on time and avoid loan defaults, or else credit-giving companies may report you to the credit bureau, which can get your BVN blacklisted.
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1. What happens when your BVN gets blocked?
When your BVN is blocked, you will be deprived of your financial assets, your bank account will get frozen along with the amount in it, and you cannot make any payments or transactions.
2. How do I remove my BVN from the blacklist?
To get your BVN back, you can do the following:
- Pay Your Debts: The primary cause of your BVN getting blacklisted may be due to loan defaults. You should clear and repay all your loans and debts.
- Connect With the Credit Bureau: You can connect with the bureau through phone and email. Your application should contain your full name, mobile number, BVN, payment evidence, and gender.
3. How to check online if I am blacklisted in Nigeria?
To check your BVN online, you can visit the Central Bank of Nigeria's official website and check the list of blacklisted people. Alternatively, you can contact your bank and ask them for a BVN check to see whether you are blacklisted.