Most of us rely on having our own vehicle to transport us to our jobs, shopping and family commitments but if an individual has fallen behind on their finances and been tarnished with a bad credit record they may wonder what types of car loans exist for blacklisted people. It’s a fair question but let’s first put the record straight. There is actually no such thing as a list of peoples names that are considered un-creditworthy in this country so the “blacklist” does not exist.
Having said that, every person in SA does have a credit rating be it good or bad. If a person has a good credit record then it means that they are always paying accounts on time and never defaulted or had any judgments against them for late or non payments. On the other hand somebody with a poor credit history will obviously have defaulted on certain account payments and this will reflect against their name on record. Unemployment has nothing to do with this so in the case where an individual may have been without work for a period of time it will not reflect as any kind of negative on their financial history.
South African’s are entitled to one free credit record per year. TransUnion, XDS and ITC are the top three credit bureaus in SA that allow individuals that may feel they are blacklisted to obtain a copy of their financial history in order to find out what kind of negative financial records a potential credit provider may know or find out about. If an individual feels that there is false information on their credit record or that some of the financial history is incorrect then providing there is sufficient proof they can challenge the credit bureaus and request that the information be corrected.
Vehicle Finance from the Banks
FNB, ABSA, Standard Bank and Nedbank are the four major banks in South Africa and if you are blacklisted then none of them will be in a position to help you get a car loan. In the last few years the banks have had to get very strict on who they lend money to and somebody with a bad credit record will be considered a high risk.
If you must approach the bank for whatever reason then Capitec Bank and African Bank maybe the providers to ask for help with financing your new vehicle but don’t expect too much from them either if you have judgments or black marks against your name on your credit history.
There are car loan options for blacklisted people at various vehicle dealerships in South Africa. Although, the interest rates will be higher than standard vehicle financing these solutions will at least afford you a decent set of wheels until you can get back on your feet financially.
More Blacklisted Car Loan Options
Just because the banks and other certain financial lending institutes will not be willing to help finance a vehicle if you are blacklisted, it doesn’t mean there are not other ways of raising enough money to buy your new or used car.
A micro loan could be an option especially in the case where an individual plans to purchase a cheaper used vehicle and if the funds a person qualifies to borrow do not completely cover the full amount of the purchase then at least maybe enough cash can be borrowed to cover the initial deposit. Raising money by renting out a room in your house or apartment, using the Internet to buy and sell second hand items for profit or working part time are a few ways of coming up with the cash for a deposit on a vehicle.
Friends and family often have savings put away and many individuals overlook approaching them to borrow money for the purchase of a car. The advantage with borrowing from a friend or family member is that the interest rate will be negitiable or even non-existent. The disadvantage of course is that if an individual buys a vehicle from money borrowed from a generous friend or family member and then defaults on payments or breaks the agreement in some way it could lead to serious family problems or ugly friendship break-ups.
The bottom line is all is not lost. The ideal thing to do if you need to buy a vehicle and have a bad credit record is to first try and get that cleared up. The cleaner your financial history, the better your chances and more options you have when it comes to borrowing money and although a little harder to find than normal finance, car loans for blacklisted people in South Africa do exist with some research and can help to get an individual the transport needed for whatever reason.