Having a poor credit score can really dampen your spirits. You literally can’t get any financial assistance from the banks or take out any form of credit from credit providers. With the economy in its unforgiving state it is no wonder that a great number of South Africans find themselves over indebted and struggling to meet their financial obligations. Rent, food, clothing, car instalments and more keep on increasing but our salaries remain stagnant. Taking out instalments and loans to meet your financial obligations may be the only way to alleviate yourself financially and before you know it; you’re in over your head.
Loans for low credit score and blacklisted
You can still apply for a personal loan from a bank as a blacklisted person provided that you offer the bank some collateral such as your home or any other form of equity this can be very risky but the bank needs to know that they can claim their money back should you forfeit on any payment; though it may be risky but it gives you access to obtaining a personal loan with a low interest rate. Should you feel uncomfortable with putting up your home or car as collateral you can always find a loan provider that deals exclusively with assisting the financially blacklisted.
Turning to a financial institution that only assists blacklisted persons may be the best way forward but it is important to note that they do not offer large sums of money and they may come with higher costs involved of repaying the loan amount. This would be known as an unsecured short term loan. It is unsecured because the credit provider does not have any security such as collateral for the loan hat is given out.
A secured loan is ideal for people who:
- Who their own homes and vehicles.
- Have been denied unsecured credit by their banks.
- Have a very low credit score and can’t pass the ITC check.
- In need of a large sum of money that can’t be provided by an unsecured loan provider.
- Have an adequate monthly salary to pay back the loan amount.
- Are in need of debt consolidation and can afford to repay the consolidated loan.
An unsecured loan is ideal for people who:
- Have a low credit score and are blacklisted.
- Do not own their own homes or cars.
- Cannot offer up security for the loan.
- In need of a small amount of cash.
- Have been declined by a bank.
- Have an adequate income to repay the loan amount.
In order to qualify for a bad credit loan you must:
- Be 18 and above.
- Be a South African Citizen with an ID.
- Be permanently employed and earning above R3 000.
- Produce 3 months bank statement.
- Produce recent salary slip.
- Provide proof residence.
Before applying for a bad credit loan you need to ensure that they are registered with the National Credit Act Regulator so that you do not fall prey to sneaky loan shark establishments. You can then look at their interest rates to make sure that you will be able to afford the repayment of the loan in the given time frame.