The South African credit market has grown and expanded over the years. The growth of this economic sector has also brought about a long list of credit repayment defaulting clients. The defaulting aspect and sometimes court judgements obtained against individuals has landed many on the dreaded blacklisted pages in credit bureaus.
Bad credit loans review: Being blacklisted or having a bad credit record in South Africa for many spells doom because it is believed that a bad credit history prevents one from accessing any credit completely. It is true that being blacklisted carries negative consequences and it makes it difficult for one to qualify for certain loans but it does not also mean being completely cut off from any form of credit finance. A growing list of financial institutions in South Africa are beginning to offer what is called blacklisted loans. Examples of these institutions include Capitec, African Bank, Mpowa finance, Global finance etc. The question by now should be, how is this done?
Blacklisted loans no credit checks – Most financial houses offering credit to blacklisted individuals offer what is called secured finance. This is the kind of credit finance provided when a client provides security to the lender.The provided security can then be used to liquidate the debt in case of repayment default. Valuables provided as security can vary from jewellery, a car or even property. In this kind of transaction, the lender is legally allowed to put on sale valuables used as security should there be failure to pay back borrowed finances. For those clients whose credit record is not very adverse but have shown inconsistencies in repaying credit, more and more lending institutions are employing the precaution of charging very high interest rates to cover the inevitable losses they will incur along the way. The loan provided in this situation is called a bad credit loan. The bad credit loan also carries a great benefit on the part of the client because paying it back on time improves ones credit rating and slowly get it back to normal. This explains how the blacklisted and bad credit loans trend came about and market indicators show that it wont be long before more and more lending houses join the bandwagon.
The above therefore should provide a gleamer of hope for those with negative credit records.
