If you’re looking for a loan but you have a bad credit history, you might find that it is very difficult to get credit for any one of the major banks. That’s why you need to consider alternative service providers that offer bad credit loans in South Africa.
These loans are easily accessible to such individuals unlike the credit products of conventional banks. The requirements are lower and this gives borrowers greater flexibility. You can use the new loan to repay previous debt and to regain financial stability.
These loans may attract a higher interest rate so always find out front what your loan repayments will be. Since you are blacklisted you or a higher risk to the lender, which is why these loans are typically more expensive to repay and attract high intersect.
Look into the size of the monthly instalment and check whether it will fit into your budget. You may also want to calculate the instalment as a fraction of your net income to get a better idea about the loan’s affordability.
Go for the shortest possible loan term
This option has two benefits. Firstly, you will save on the total interest amount as the interest rate will be charged for a shorter period of time. Additionally, you will avoid the risk associated with changes such as reduction in income, additional expenses and changes in the conditions on the loan in the long term.
There are loan provider who provide cash loans for blacklisted people. This means when you apply, they will provide you with a variety of quotes of the most competitive interest rate loans for blacklisted people.