Knowing where in South Africa you can find and apply for a personal loan when you have a history of recorded bad credit can be a challenge. ABSA, Standard Bank, Nedbank, Capitec, African Bank and FNB all offer loans for personal use but applicants with a poor financial history will be considered a high risk to lend money to and most likely will not qualify to borrow. But does this mean that people who are blacklisted cannot borrow money? The answer is no. There are credit providers willing to lend cash as well as a few other options of borrowing money for people with bad credit
Shopping malls and local shopping area’s are a good place to find micro lenders that offer to lend small amounts of cash to those who may have had no luck at the banks. These credit providers will more often than not be willing to help a person out who needs to borrow cash fast but one has to be a little careful of the inflated interest rates. You see, the higher risk a person is considered to lend money to, the higher the interest rates will be on paying back that borrowed money.
Apart from finding these micro lending companies in your local shopping area they can also be found by checking out the advertisements in local newspapers or having a look on the various noticeboards found at supermarkets and grocery stores. Even some of the second hand shops in South Africa offer small loans these days such as Cash Converters and Cash Crusaders.
Let it just be said that if you are someone who finds themselves with a bad credit record that there is no shame in this and you are certainly not alone. Many South African’s end up defaulting and missing payments on various accounts due to accidents and illness and suddenly being faced with expensive medical and hospital bills. Unemployment is another huge factor. People often get retrenched from companies and struggle for a period of time to find a job and end up neglecting account repayments due to the fact that they just have enough money to put food on the table or to buy a few items of clothing.
Some sound advice for anyone with bad credit that needs a loan quickly is to make sure the credit provider you approach for application is properly registered. It’s a good idea to have a chat with friends and family members to try and find out if anyone you know has had dealings with the company in the past. The reality is that there are different types of loan sharks in South Africa so you need to be careful you are not signing your life away by borrowing money from a reckless lender.
Complete the application form in detail when you are applying for a personal loan, try not to leave anything out or hide any information that you may feel necessary to do so. Be as open and honest as you can with a credit provider, even if you think certain questions on a form are irrelevant, answer them as best you can to make sure your application is not delayed.
Although being refused credit by any provider is not actually recorded on your individual credit report, every application does get recorded on file so be careful not to apply for finance at different credit providers in a short space of time as this will indicate a level of financial desperation or even fraud that could impact your chances of being approved for a future loan negatively.
Online applications for personal loans are by far the fastest and convenient method to apply and accompanying documents required by a credit provider can all be scanned, e-mailed and faxed and by comparing these documents and your application form along with your credit history a provider will be able to make an informed decision on whether or not you will qualify for a loan.
For people with no credit record, loans can also be difficult to qualify for. This is because a person that has never borrowed money in the past and has no proof on record that they will be able to pay the money back to a credit provider or that they are trustworthy when it comes to regular repayments.
A good idea is to get yourself a free credit report in South Africa before you even approach a loan company. This will give you a clear picture of the information the credit provider is going to be seeing about you and will give you an opportunity to explain certain payment defaults or correct anything you may feel is an error on your financial history report.
Not all applications for loans are successful and credit providers are under no obligation to approve anybody. People under debt review that wish to apply for a personal loan are usually excluded from applying.