Blacklist

AAA

DEFINITION of 'Blacklist'

A list of persons, organizations or nations suspected or convicted of fraudulent, illegal or criminal activity, and therefore excluded from a service or penalized in some other manner. A blacklist may be maintained by any entity, ranging from a small business enterprise to an inter-governmental body. Depending on the scope of the blacklist, it may either be secret or public.

A common misconception held by many people relates to the purported existence of a "credit blacklist" to deny credit facilities to consumers with poor or spotty credit histories. Since a credit blacklist as such does not exist, the reality is that creditors and lending agencies rely on the consumer's credit history rather than a blacklist to guide their loan decisions.

INVESTOPEDIA EXPLAINS 'Blacklist'

The negative effects of being blacklisted can be quite considerable, with huge inconvenience being the least of them; the more severe effects include loss of credibility and goodwill, a decline in business and clients, and financial hardship.

An example of a secret blacklist includes the "No-Fly List" maintained by the U.S. Department of Homeland Security, which lists people who are not permitted to board a commercial flight to travel into or out of the United States. An example of a public blacklist is the list of non-cooperative countries maintained by the Financial Action Task Force (FATF), which lists countries that the FATF considers to be uncooperative in the global effort against money laundering and terrorist financing.

If you have been denied credit because of a poor credit history, you should attempt to repair it as soon as possible. Some of the measures suggested by experts to repair credit history include reviewing your credit record for errors and inaccurate information and making existing debt repayments on time.

RELATED TERMS
  1. Jurisdiction Risk

    The risk that arises when operating in a foreign jurisdiction. ...
  2. Credit History

    A record of a consumer's ability to repay debts and demonstrated ...
  3. Credit Risk

    The risk of loss of principal or loss of a financial reward stemming ...
  4. Money Laundering

    The process of creating the appearance that large amounts of ...
  5. FICO Score

    A type of credit score that makes up a substantial portion of ...
  6. Default Probability

    The degree of likelihood that the borrower of a loan or debt ...
Related Articles
  1. How An Insurance Company Determines ...
    Home & Auto

    How An Insurance Company Determines ...

  2. What's On A Consumer Credit Report? ...
    Credit & Loans

    What's On A Consumer Credit Report? ...

  3. Spotting A Forex Scam
    Options & Futures

    Spotting A Forex Scam

  4. Why Bad Credit Is Bad For Financial ...
    Professionals

    Why Bad Credit Is Bad For Financial ...

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center