Sometimes in life, people fall under tremendous financial pressure, cannot pay the necessary bills, and become blacklisted. More often than not South African Banks will decline a loan for blacklisted person, simply because they do have a clear bank history.
The fact that your credit history is less than perfect does not mean that you can never obtain credit. You can rebuild your credibility as a borrower and enjoy all the benefits associated with this. You can readily take advantage of the bad credit loans designed for people who are blacklisted.
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.
Evaluate the affordability of the loan carefully
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.
Here are five providers for loans for people with bad credit:
- Global Finance
- Pep Loans
- Just Loans
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.