Loans for blacklisted in South Africa - The Definitive Guide

Can you qualify for personal loans while you're considered to have bad credit?

The answer: Yes!

In all the 8 381 registered credit providers in South Africa, only a few will offer you a loan for blacklisted.

It's not the end of the world if you're blacklisted. But it can be very difficult to get financial aid from banks and other institutions.

Let's get started.

What Happened?

When life challenges people, they often go for loans to solve problems.

So, you bought a car or house through finance.

And life happened, you lost your job due to the Covid19 pandemic period. You were unable to honor your loan agreements.

In that instance, credit bureaus will blacklist your name.

This means you'll never get personal loans from banks or any other reputable lenders.

Being blacklisted can be very stressful but not the end of financial life.

As indicated above, your credit score will drop to the lowest and you'll be considered high-risk to offer a loan to.

You will need to find alternative lenders when you want urgent cash.

You can clear your name when you rebuild and boost your finances.

Loans for Blacklisted - Things to know

There's hope.

But unfortunately, banks don't trust you at this stage because you've been marked blacklisted and high risk.

In South Africa, we don't have home and vehicle loans for blacklisted people.

The loans to target when you have low credit score are microloans.

Microfinance lenders often have the highest interest rate and ridiculous repayment terms.

Loans are unsecured and sometimes secured. Microlenders can lend you money, even if you're blacklisted.

The loan is based on your capability to pay it back. Are you a responsible loan seeker?

With secured loans, you will need to place an asset to secure your loan.

You have a high chance of getting approved when you apply for secured loans if you have bad credit.

Clear your name from the blacklist in South Africa

Wondering how you can recover and clear your name?

To be honest, it's not going to be an easy job.

It might take longer than you can imagine, depending on the size of your debt.

Pay off your debt

The best way to clear your name from blacklist is to start paying off your debt.

You don't have to settle all your debts at the same time. The idea is to show lenders you're able to pay installments on time NOW.

After that, talk to the credit provider and see if there's any quicker way of solving your name.

Otherwise, by law, you'd have to wait for a period of a year for the entry to be removed.

Secondly, you can get a debt consolidation loan. Best if you don't have big debts under your name.

You could also pawn valuable assets you don't need anymore. Prioritize and use the money to pay off your debt.

Where to get loans for blacklisted

Obviously, banks won't offer you a loan just like that. To them, you're too risky to be given a loan because of your credit rating.

However, there are a couple of lenders that can help.

These guys will assist you with a low credit score. Most of them are online lenders.

Look, there are over 6 000 registered credit providers in South Africa. And we only know about a few banks and well-established institutions.

The rest have been in business for more than 10 years. They have been helping people with loans for bad credit, loans for unemployed and so on.