South Africa is a country full of companies offering to lend cash, loans and finance for people with a bad credit record are available at different types of credit providers and it is up to the individual to be aware of who he/she is borrowing from. Micro lenders and loan sharks can be found on streets in Cape Town, Johannesburg, Durban and in fact all over the country and although there are some creditable lenders, among these are also some crooks.
All of us need money to clothe, feed and look after both ourselves and our families and when someone finds themselves in a position of hardship the necessity arises to reach out and apply to borrow money from a credit provider of some sort. It can prove frustrating and difficult for certain individuals to get approved for finance while having a bad credit record and although it can seem like nobody is willing to help anyone with a poor financial history, there is hope and a few different options.
Perhaps one of the easiest ways to borrow cash for a person with bad credit is to appeal to a member of the family or a close friend to co-sign a loan agreement. This would have to be someone with a very good credit record and obviously knows the borrowers current situation and trusts that he/she will be able to honour a contract and has the ability to make the repayments on the debt.
Of course, a co-signer will be the one responsible to pay the debt off in the event that the borrower defaults and breaks the loan contract terms. Also, the co-signer runs the risk of ending up with a bad credit record should the borrower default or not making repayments by the due dates agreed.
The best advice one can give is that an individual do everything in their power to raise their credit score and then apply at a bank or respected financial service provider for a more traditional loan or even a credit card facility. Free credit checks are available online in South Africa which gives an individual the opportunity to see what may be preventing them from qualifying for finance. Any information on that credit report that could be an error can then be rectified and the individual can work at re-building poor credit by not overextending on further borrowing and making sure that monthly bills get paid by their due dates.
Online Finance Approval
The beauty of recent technology and the internet means that things such as applying for and qualifying for finance are a lot more convenient. No need to wait in long queues at a bank or other lending company, no having to wait ages for an appointment with a financial consultant, just a few clicks of the mouse on your pc from the comfort of your home or office and application forms can be filled in and submitted within a few minutes.
There are systems that will process applications by forwarding them to various different lenders increasing the chances of an applicant being successful and potentially being able to offer an applicant the lowest interest rate payable.
Once an individual with a bad credit record has been approved for a cash loan it is their responsibilty to adhere to the terms and make sure the repayments are made on time. Not only will this put them in a good light with the lender but it will also help to strengthen an existing credit report placing the individual in a much better financial position for any future financial help that may be needed to apply for.
Banks are very reluctant to help someone with a poor financial history offering no loan protection forcing people to search for better solutions. For some reason the banks are not interested in the reasons for a persons drop in credit score and if they are considered a bad risk in any way, most banks will not be prepared to assist.
It’s a common occurence these days for a lot of people who find or have found themselves in some financial difficulty. There is no shame in having struggled in the past and wanting to improve your situation and the cash loans for people with bad credit records can be a great asset for those looking to apply for a solution to help them get back on their own two feet financially.