There are credit products which are specifically tailored for people like you, but they are quite expensive. There is good news, however. You can still get finance as long as you put in some extra effort. You just need to learn how to avoid the common traps and which path to follow.
Things may not be as bad as you think. You have to know exactly where you stand. Request your credit report and go over it carefully. If you notice any errors, you should have them fixed. You may turn out to be more creditworthy than you think.
You should know that having bad credit is a relative term especially when in South Africa. You may not be able to meet the requirements of one lender, but you may qualify for products offered by other lenders. That is why you should always explore all available options.
You just need to do this carefully. It is best if you submit loan applications to different lenders within a short period of time such as a week or two. In this way, the applications will not have a negative impact on your credit record. You must apply only to registered credit providers that adhere to the rules and regulations of the National Credit Act.
Remember that loan sharks will readily extend a loan to you, but they will charge interest and fees which may be virtually impossible to pay.
When your credit record is very poor, you should consider alternative ways for obtaining finance.
Here are examples of such loans:
- Peer-to-peer Loans for Blacklisted
The so called peer to peer lending is gaining greater popularity. You can readily obtain a loan from a private person directly. There are special websites for meeting such individual lenders and borrowers. You do not have to meet any specific financial criteria in order to get finance.
- Loans from Family & Friends
With P2P loans, you will borrow money from people you do not know. You will certainly feel more comfortable to get a loan from a family member or a friend. You will most likely have higher chances of getting finance as well. If you go for this option, you must do your best to feel the lender feel at ease as well. You should put the loan agreement on paper and preferably have the funds transferred to your bank account instead of getting cash.