Knowing where to get personal loans for bad credit in South Africa 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 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 simple answer is no. There are credit providers willing to lend you cash. As well as a few other options of borrowing money for people with bad credit records.
More Reading: Blacklisted and in need of a Loan?
Personal Loans for Bad Credit with Micro Lenders
Shopping malls and local shopping area’s are a good place to find micro lenders.
These 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 you out if you need to borrow cash fast. But you have to be a little careful of the higher interest rates.
Because 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 advertisements. Such as 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. For instance Cash Converters and Cash Crusaders.
Why South Africans want Personal Loans
If you are someone with a bad credit record 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. Or 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.
Find Legal Loans for Bad Credit
Some sound advice if you want legal personal loans with bad credit is to make sure the credit provider you apply with is properly registered.
It’s a good idea to have a chat with friends and family members. 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.
Apply for Bad Credit Loans Online
Online applications for personal loans are by far the fastest and convenient way to apply. And you can scan accompanying documents. Or you can use email or fax.
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 had to borrow money in the past 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 cannot normally apply.