Finding a bad credit loan from a reputable lender in South Africa is easy – and can help you regain financial control.
If you are blacklisted or have bad credit you will be relieved to know that you are still able to apply for a loan. Bad credit loans are readily available, and are designed to help you reach your financial milestones regardless of your credit score.
What is bad credit and credit scoring?
All South African consumers have a credit rating and report based on their debt repayment history. All information of credit obtained also forms part of a credit profile. A negative or bad credit score is as a result of late or non-payment on debt repayments and other financial commitments. Although a bad credit score can affect your ability to obtain credit in the future, there are lenders that approve quick cash loan for those who are blacklisted. A good credit score is thus as a result of keeping true to financial commitments and debt repayments. Loans are easily approved if the consumer has a good or satisfactory credit score.
How to get a loan with bad credit?
Having a bad credit score should not stop you from applying for a apply for a easy loan whether you are needing a small personal loan or a larger loan type like a car loan. The easiest way to secure a bad credit loan is if you are able to provide security on the loan amount. This means that you would need to have assets that you can sign off against a loan in the event of defaulting on loan repayments. If you are able to provide collateral, lenders are generally at ease with approving a bad credit loan. Another benefit is that you could lower the interest rate of the loan as you are able to secure the full repayment of the loan.Forms of security that are generally accepted by lenders include but is not limited to home equity, vehicle/s and or assets that can be resold to recover the quick loan amount in the case of non-payment.
What if I am unable to provide collateral for a bad credit loan?
Should you be interested in applying for a unsecured short term loan, your best option would be to deal with a lender that provides affordable loan specifically designed for consumers who are blacklisted and have bad credit scores. Generally, these bad credit loan types have higher interest rates, and other related costs.
Who should consider applying for a secured bad credit loan?
- If you are a homeowner or own a vehicle, and have a bad credit history
- If you have been refused by traditional lenders such as banks
- If you have collateral you could use a secured bad credit loan to consolidate your debt
Standard requirements for a bad credit loan
Lending requirements vary depending on the lender but generally you are required to be a South African citizen and have a valid green bar-coded ID. Applicants should also be over the age of 18 and earn an income as well as be able to provide proof of income and residence.
Where to find a bad credit lender in South Africa?
There are a number of reputable lenders that approve bad credit loans in SA. A loan comparison site is an effective method to finding the perfect bad credit loan. It is advisable to ensure that your lender of choice is registered with the National Credit Regulator. Reputable lenders are compliant with the laws that regulate and govern credit providers.
What to look out for when choosing a bad credit loan
Interest rates – Ideally, you would want to find a lender that offer competitive interest rates. This means your overall repayment amount will be less compared to applying for a loan at a higher interest rate.
Transparency – Consumers must ensure that they are aware of all the costs involved. In addition, ensure that there are not any hidden costs and clauses. A lender that is transparent, honest and fair will disclose all such information before you agree to the simple affordable loan terms.
Early loan repayment – Most lenders encourage consumers to repay loan sooner, if possible. However, some lenders might charge a penalty for early repayment. Ask you lender for the terms and conditions of early repayment of your quick loan.
Online bad credit loans are convenient and quick
Most lenders offer online loan application, which makes applying for a loan easy and convenient. It allows you to apply for a loan at any time, from anywhere. Lenders in South Africa offer same day loan approval, giving you the financing you need today! Simply scroll to the online loan application form and complete as required, and provide the necessary supporting documentation. You will then receive further communication via email. You should have your fast loan finalised, and the cash you need with no hassle at all. Don’t let a bad credit score keep you back from applying for a loan that can help you move forward financially.