Want to know more about loans for blacklisted in South Africa?
How does one get blacklisted and overcome that negative credit rating?
In this article, we're going to try answer all your questions about being blacklisted and securing loans for bad credit.
Let's get started...
How did you end up blacklisted?
When life challenges people financially, they tend to go for loans. Maybe you bought a car or house through baking finance.
Should you fail to honor your loan agreement. Should you fail to pay back the money on time.
Your name will be blacklisted by credit bureaus.
This means you'll not be able to obtain loans from banks and other reputable financial institutions.
Being blacklisted can be very stressful but not the end of life.
Not many lenders offer loans for blacklisted in South Africa. You're going to have the most difficult time securing loans.
In simple terms.
Being blacklisted just means you have bad credit history or low credit score.
When banks and other credit providers doesn't want to help with credit, you will need to find alternative online lenders.
You can clear your name, when you get better with 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 micro loans.
Micro finance lenders often have the highest interest rate and ridiculous repayment terms.
Loans are unsecured and sometimes secured. Micro lenders 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 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 couple of lenders that can help.
These guys will assist you with 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 more than 10 years. They have been helping people with loans for bad credit, loans for unemployed and so on.