Personal loans for bad credit or blacklisted people are available in South Africa. You can apply through the bad credit loan application forms. Or through blacklisted finance forms.
These are types of loans for people with a bad credit history. And are usually in the form of an unsecured loan.
They come in handy for people who can’t get finance from the banks in South Africa and loan companies.
Personal unsecured loans for people who find themselves with a poor credit record are not secured against any type of assets.
This means if you default on monthly payments then the financial institute cannot repossess your assets. Although they can take legal action to recover any money you owe them.
Applying for a Personal Loan Bad Credit
Get quotes from a number of different lenders in South Africa for unsecured loans. Because each finance company offer different amounts to those with a bad credit rating at different payback terms. As well as with varying rates of interest.
Not all loans offered to blacklisted people are as easy to get approved for as finance companies may make it seem.
Therefore it is vital that you do your research on the types of loans available to you if you have a bad credit history in SA.
Some companies will make claims that you can qualify for a loan within minutes or an hour after application.
When in reality, all they want is your contact details so that they can sell them as part of a list to other companies.
Be careful and make sure you only apply for a loan with reputable finance companies.
With a little searching online you can find reputable lenders that give personal loans for bad credit and to blacklisted people.
Which banks Give Personal Loans for Bad Credit Clients in South Africa?
It is generally advisable to repair your credit record and avoid incurring more debt until you have paid the money off. However you can find financial service providers who are willing to provide loans to you if you have a bad credit record.
Or even if you are on a blacklist.
However, banks and most reputable financial service providers will steer clear of financing individuals with bad credit records.
You will struggle to get a bad credit loan through ABSA, Standard Bank, Nedbank, FNB and Capitec for example.
Therefore you will be left with companies that may not be as honest or reputable as you would like.
You should beware of financial service providers who charge extortionate interest rates. Or interest rates that compound very quickly to over 1000 percent of the loan itself.
You must be careful about getting into situations like this.
Overwhelmed by debt
It is incredibly easy in today’s society to get overwhelmed by debt.
Because there is such a drive and urge to buy and own and then buy and own the next thing.
Also because most people cannot afford to buy the items that society thinks are necessary for a happy life, most people take out loans. Or open store accounts or apply for credit cards to buy items on credit.
It is far too easy to get a credit card or a quick loan and almost anyone will qualify.
Unfortunately some financial service providers are very good at hiding certain terms and conditions of the loans that they provide.
As a result they charge sneaky compounding interest rates that make loans difficult to pay back for most people.
If you have got a few different loans, accounts and a credit card debt or two, you can find yourself overwhelmed by debt.
Once you have been blacklisted, you will have to wait until it has been lifted.
Or pay to get out early and then you will have to start building your credit record again.
Fix Your Debt
If possible, it is good advice not to borrow more money if you are already in debt. And if you already have a bad credit record.
It is a good idea to concentrate on paying off the debts that you owe and if you have to live frugally for a certain period while you do it. Then just bite the bullet and do that.
You will be better off in the long run if you get your debt under control and work on a better credit score and credit record.
Bad Credit Loans South Africa
While it is a good idea to avoid debt when you already have a low credit record situations can arise where there is no alternative.
This is understandable, and while it is not the ideal situation, you could manage your new debt as long as you are smart.
Read the fine print carefully before you sign an agreement and pay your monthly payments and interest on time and in full.
There are many financial service providers who will provide credit for individuals with bad credit records. But you must keep in mind that a large majority of them are loan shark agents.
Some financial service providers in South Africa that will finance loans without doing credit checks include:
- Loans Direct
- Dot Loans
- Home of Bank Loans
Certain websites list a range of financial service providers who will finance loans for individuals with bad credit records.
One of these companies is Loan Finder South Africa.
Again, it is important to remember that you can’t trust all financial service providers. Therefore it is a good idea to get advice from a financial expert that you trust.