How to go about obtaining loan approval with a poor credit record?
Having bad credit simply means that at some point in your life you have been a bad payer and have accrued this record at the credit bureau as a result. It’s not a problem when you’re in control of it and have a budget that caters towards settling it through repayments each and every month. It does, however, become a problem when something unexpected turns up in your life and you need access to obtain personal loan approval, pronto! Perhaps there’s a funeral, or a trip, or a medical bill that needs to be paid and you simply can’t afford to spare any more of your salary.
The obvious solution is a loan. However, with poor credit, banks and other lenders generally won’t oblige or offer any solutions that cater to you. Being a high-risk individual when it comes to finances is something that we all need to avoid as best we can. The problem is that no matter how hard one tries, it’s a tough economy and dealing with all the financial trials that we endure through life, we can still find ourselves in predicaments where we need more assistance.
Other providers saw this gap in the market and decided to do something about it. They decided to tailor a solution that would allow people with bad credit to still access more credit when they needed it the most. We don’t like to be judged, and certainly wouldn’t like to be judged on our past financial mistakes, which is why a current affordability assessment is the deciding factor when your bad credit loan approval request goes through to these obliging lenders.
What is the criteria that needs to be met?
You need to earn a minimum monthly income of R3000 per month, be employed full time and working for a minimum of 3 months at the current employment. You need to be over the age of 18 and be a valid citizen of South Africa.
The documents required are quite simple, you just need to provide 3 month’s bank statements, a proof of address and recent payslips. If you meet the above criteria and have the following documents on hand, you can easily apply right from where you’re sitting. All you need is access to the internet so that you can apply online for quick loan approval that will get you the money you need fast.
What do lenders charge for bad credit loans?
Every lender is different, but it can be said for most that there are no fees generally to apply for bad credit loan approval in Cape Town. The charge comes in when the interest rate is determined by the loan agreement. Each lender out there will also have different interest rates available in the market, so it’s best to shop around for a deal that you feel will suit you and your financial situation the most.
The rate is fixed and therefore allows for adequate budgeting from inception to completion of the loan agreement. The loan is settled via monthly instalments, each month that is collected via debit order and made up of the capital as well as the interest rate until it’s fully paid.
Lenders will only loan you an amount that you can afford to repay. This essentially means that you needn’t worry about struggling to afford it unless of course, you take on other expenses, in which case defaulting on payments on a loan can lead to some severe penalties.
What is the process when applying from Cape Town?
You can apply through the online platform on the lender website or in store, depending on your personal preference. The short-term loan approval process is no different from traditional loans, in that you simply complete the form with your personal details and click “apply now” when you’re satisfied with all your furnished information.
Through an affordability assessment, the expert consultants at the lending firm can easily determine whether you are fit to take on the loan that you have applied for and will communicate with you almost immediately once the decision has been reached.
You can also apply for payday loan approval with bad credit as most payday lenders do not perform a credit check but rather base their lending decisions on the customer's affordability.
If all is in order and you are successfully approved for a bad credit loan, then the funds will be transferred into your South African bank account. It’s that simple!