Blacklisted consumers or consumers with bad credit are able to get approval on bad credit loans in SA.
What are bad credit loans?
Bad credit loans are usually a secured loan type. This means that the loan is secured against qualifying assets in the event that a consumer should default on repayment. By applying for secured bad credit loan approval in Durban or elsewhere in South Africa, you are less of a risk to the lender, and it could possibly secure you a better interest rate deal. Bad credit loans are specifically designed for consumers with bad credit scores or a bad credit history. The major benefit of a bad credit loan is that it gives access to financing that would otherwise not be possible.
So, whether you are blacklisted or have a bad credit score, there are lenders in South Africa that are able to offer you a good deal on a bad credit loan.
What is a bad credit score?
Consumers in SA have a credit rating and report, which is registered and available to all credit providers should you apply for credit. The information held in your credit report pertains to your debt repayment history, whether or not you have defaulted on repayments etc. Thus, a bad credit score would be as a result of late or no debt repayments to other creditors and may hamper your ability to get personal loan approval from a traditional lender.
Do you need to apply for a bad credit loan in South Africa?
The easiest way to apply for a bad credit loan is to apply online. It is convenient and time efficient, which ensures that you have the cash you need with a quick turnaround time. When applying online for a bad credit loan or even for payday loan approval, you are able to upload the supporting document, saving you time and hassle. A secured bad credit loan is the easiest to apply for and possibly the more cost-effective option. By securing your loan you should be able to benefit from a lower interest rate.
Unsecured bad credit loans
Consumers who are unable to provide collateral for a loan have loan options available to them however these options are usually associated with higher interest rates and other loan costs.
Who should apply for a secured bad credit loan?
If you are able to provide collateral in the form of owned assets, your loan will be approved based on the merit that you are able to secure the recovery loan amount in the event of default on repayment. However, the fact that you are able to provide collateral allows the lender to view you as a lower risk consumer, which might secure you a lower interest rate compared to an unsecured bad credit loan.
Bad credit loan requirements
If you are applying for bad credit or quick loan approval you will be required to, but not limited to, providing the following as supporting documentation:
- Valid SA green bar-coded ID
- Proof of residence
- Three months’ payslips
- Three months’ bank statements
Are there bad credit loan providers in South Africa?
Yes. There are many reputable bad credit loan providers in South Africa who are able to assist consumers that are blacklisted or who have bad credit apply for bad credit loan approval in Joburg or, elsewhere in South Africa, to suit their financing needs. A reputable bad credit lender in SA should be registered with, and adhere to the rules and regulations as set out by the National Credit Regulator.
Choose the right bad credit loan provider
Before choosing a preferred bad credit loan provider in South Africa, it is advisable to compare key features, which will ensure you are getting the best bad credit loan in South Africa.
A transparent lender will ensure that you are fully aware of all the terms and conditions including all costs and the total repayment amount on the long or short term loan approval agreement.
Ensure that your lender of choice offers a level of customer service that is beneficial to consumers. Efficient customer support is something of value in a lender and makes lending consumer friendly.
Shopping around for the best interest rates on your loan is possibly the best way you can save on the total costs of your loan. You can also make use of our loan tips and guides to find out more information on how to get the most out of your loan agreements.
Will your lender charge you an early repayment fee should you wish to settle your loan earlier than the agreed term? Most lenders to not have early repayment charges but it is worth knowing should you settle your loan early.