Getting a loan can be a nightmare when you are clean and not blacklisted. When you have bad credit, it is even worse. I also would not trust you with my money if you were at high risk of not paying me back.
The same applies to banks and other lenders. They need to know you will be able to return the borrowed money with interest. But not everyone has trust issues. Other institutions are willing to give you a loan even when you are blacklisted.
They understand that when it rains it pours. Life happens and when you need financial assistance to loosen the burden, they are more than happy to assist you. Being blacklisted doesn’t mean you cannot remodel your home or even get vehicle finance.
Sometimes in life, we need that extra support and maybe you have changed your ways post being blacklisted, and now you need that extra cash to reach those milestones. You might not be able to qualify for traditional loans but there are quite a number of bad credit lenders that will come to your rescue.
Now that we have established that being blacklisted and having bad credit does not mean you do not qualify for a personal loan. I am sure you are waiting in anticipation to see which lenders are willing to give you the loan to change your life regardless of whether or not you are blacklisted.
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.
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
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.
Have bad credit and a cash emergency? Here is a list of potential lenders that can assist you:
1. Hoopla Loans
Hoopla Loans offers you rapid internet loans that you can use for whichever purpose you like. They provide loans ranging from R100 to R250,000. Additionally, they have a very high approval rate and don’t require any information regarding the purpose of the loan; it is entirely up to you.
Applying for Hoopla’s bad credit loans in South Africa is simple, and you are free to spend your loan in any way you see fit. This lender will still work with you even if you are blacklisted and have a poor credit history. Once you’ve completed the loan agreement, the short-term loans will be deposited right into your bank account.
You can borrow up to R180,000 with uBank even if you are blacklisted, with repayment terms ranging from 1 month to 72 months. To make the process as simple and quick as possible, uBank has made an online calculator available to you to establish the repayment terms.
For the past 40 years, uBank has facilitated the miners’ connection with their families. It has been helping them without hesitation, from using them as a regular bank, sending cash to their loved ones, to applying for bad credit loans.
3. EC Loans
EC Loans will assist you in obtaining a loan even if you have a low credit score or have been blacklisted. The process of getting financial aid has been streamlined and made simple. They are aware that dealing with the burden of your financial situation already leaves you with little time or patience for complexities.
On their books, EC Loans has more approvals than rejections. This is because they offer loans that are reasonable and adaptable to the demands of borrowers with poor credit. They lend money to people who have bad credit and can offer up to R120 000 with interest rates as high as 28%. If you can afford the payments, being approved shouldn’t be a problem. The money will be in your bank account in 24 to 48 hours.
They provide personal loans, loans for individuals with bad credit (blacklisted), and debt consolidation solutions that will enable you to start living once more. Even if other lenders have failed to help you, they are prepared to do so.
You have access to a range of credit alternatives with FinCheck. These loans range in length from short-term to long-term and start at R8000 with no upper limit.
5. Easy Cash Loans
Easy Cash Loans concentrate on providing lasting, added-value services that are ensured to offer a customised lending solution to all qualified applicants. This implies that everyone can have their loan applications approved, including those whose names are blacklisted. Since they began, they have earned almost 4 billion rands in pay-outs. They can assist people when no one else will, so they can truly hold their heads high.
I have given you an idea of where to go when you are blacklisted. There are countless institutions that are willing to lend you money to take care of all your financial needs. You just need to find one that meets your budget, an interest rate you agree with, and repayment terms that suit your plans. I hope you find one that helps you get back on your feet or even reach your dreams.