Online Loans for People with Bad Credit
People get blacklisted for a number of reasons which in the end prevents them from being assisted by banks. It is not the end of the road. You can still get a loan designed for people with bad credit. No need for rejections anymore.
There are many lenders in South Africa who assist people who have a bad credit record and even blacklisted. Because having a bad record is linked to your history os how you handled credit in the past, this type of loans is considered as high risk.
Loans For Blacklisted People With Bad Credit Record
If you learn that you have been blacklisted and therefore your credit record is now bad, it is not the end of the road for you. You will no longer be able to get assistance from the bank or other registered credit services companies. But this does not mean you can’t get a loan. There are private lenders who are willing to help those with a bad credit record.
These lenders will design a loan suitable for your needs given your affordability and your risk factor. You might end up scoring a loans with a bit of high interest.
Blacklisted Loans In South Africa
South Africans are known for recklessness when it comes to handling money. This is historic. This is why traditional and registered lenders are not the only ones we have in South Africa. You will be surprised how many private lenders who are willing to help. These operate online most of the times but they are equally reputable. You just have to locate one that can help you with your loan requirements.
Because people with bad credit record carry a bit of a risk when it comes to lending, companies that operate in this space will have their risk oriented approach to lending. The criteria they set out might be slightly different from that of South African banks. In most cases they will require what banks need to assess your application but then add one or two more requirements.
When it comes to interest charge on loan repayment, private and online loans lenders may charge slightly higher interest as compared to traditional lenders. Some of these do not operate under a regulated environment so their interest is not regulated. They simply design a package sensitive to your risk profile. They may also want to shorten the repayment period.
Know Your Credit Record Before Looking For A Loan
Your credit record is as important as all other financial aspects of your your life. The fact that you do not always have to do something about it on a daily basis does not make it less important. Many people only think about it the day the have shortage of money. More than a quarter of blacklisted people are not even aware of it.
Because creditors always opt to blacklist you when there is a disagreement, many people get their names put on the list long after they ended their relationship with the creditor. They get on with their lives not knowing that they are flagged. They learn about it the day they have their credit history pulled out for various reasons. It is almost like a speeding fine that never got sent to you.
There is hope because you can still get help even if your record is bad. You might also just want to fix it before you go out looking for more cash. It is better you do this before you run into a corner and you need a loan.
First Things First, Get Your Credit Report Sent To You
Like we said before, it is possible and very easy to get your credit report sent to you by email. The first step is to communicate with credit bureau and ask for them to email you your credit report. By law you are entitled to one free report per year. If you want more you will be charged for it.
There are two major credit bureau is South Africa that have become popular over the years. They are TransUnion and Experian. There may be others but the two are very important in the country. When you contact them they will need some of your information in order to pull your record out. You will have to provide them with your ID number to make it possible to trace your record.
Steps To Follow When Looking For A Bad Credit Loan In South Africa
We always advise our readers to first consider whether it is not wise to first clean your credit record before going out to secure a loan. Like we said, we have seen people who got blacklisted for like R50 debt. So instead of taking a loan with a high interest when you were listed for just that, it might be wiser to just follow step to clean your record.
The next thing you must do is to perform a search which is normally easier when done online. A physical search may take you days while online search will return results almost instantly.
Once you have identified lenders who offer the type of a loan you are looking for, you now need to figure out how much interest you will be charged on your loan.
This is where comparison comes in. You must compare interest charged by different lenders that you have identified. You must also look at the loan repayment period because this is impotant when it comes to the total amount you end up paying back. Luckily most of these will have online loan calculator to help you do your maths.