Having bad credit usually means that you have fewer options when you‘re searching for personal loans. Getting yourself into a situation where you are unable to afford loan repayments often leads to bad credit. At times unexpected expenses or life occurrences can trigger a set of events leading to bad credit.
While it may be quite challenging getting access to further credit with bad credit, it is actually possible.
How to get bad credit loans in South Africa:
Don’t be afraid to shop around
In the past, getting access to a personal loan meant putting on your best outfit and heading to your local bank to apply for a loan. These days you can get access to any type of loan by simply searching the internet. If you’re looking for bad credit loans in South Africa, you may find that it pays to spend some time shopping around and making comparisons between lenders, loan amounts qualifying criteria and interest rates.
Make sure that you submit your applications within two weeks of one another so that it doesn’t affect your credit score.
When you apply for too many loans at the same time it may affect your credit score negatively. If you want to improve your chances of qualifying for bad credit loans, space out your applications accordingly.
Apply only to reputable lenders
Ensure that you apply only to lenders registered with the National Credit Regulator (NCR). Avoid unscrupulous lenders who make you pay upfront fees
Consider alternative lending solutions
Credit unions, peer-to-peer lenders, or loans from family and friends can provide viable solutions to your financial needs. You could also improve your chances of getting bad credit loans in South Africa by getting a co-signer.
You could provide collateral for the loan, which lowers your level of risk. The loan amount for which you qualify will be based on the worth of your asset.