Blacklisted loans are financial short term lending solutions specifically designed for those with a bad credit rating. These are mostly South African individuals who have either defaulted in repayments, or have been judgments against them due to not settling outstanding debts. The amount extended through these loans are limited by the amount of money available for lending and repayment terms are often quite strict. As these loans are meant to be used for financial emergencies only, they are often accompanied by high interest rates and other charges. Before getting a blacklisted loan you need to be prepared with all documents and information like bank statements, credit history and the amount you wish to borrow.
Lenders and institutions that provide this type of financial solution do so because it offers them instant money without the need for extensive credit checks. Lenders feel much more confident offering blacklisted loans to individuals since they cannot be easily turned down due to your poor credit score. Moreover, if you have been turned down by other financial institutions earlier, then you can be sure that getting a blacklisted loan is not going to be a problem.
Another major advantage with blacklisted loans is that they allow you to access cash loans in small amounts, which makes debt repayment much easier to manage. Since your loans are approved on a case by case basis, lenders are more willing to offer smaller loan amounts as compared to regular cash loans. This means that blacklisted people usually receive higher loan amounts for cash loans.
A major disadvantage with short term loans South Africa blacklisted loans is the increased interest rate charged on them. Since blacklisted individuals do not have good credit rating, lenders naturally increase the interest rate to make up for the increased risk of lending money to such high-risk individuals. In order to avoid this increased interest, it is highly recommended that you keep your credit rating up to date. Maintain a healthy credit rating and you will definitely find it easier to get affordable blacklisted loans.
Another important thing to consider before applying for blacklisted loans is the application process itself. Blacklisted loan companies usually require borrowers to submit their application forms on the company’s website. If you are planning to get one of these loans online, then you should ensure that you complete the application process properly to avoid falling into the blacklisted group. Here are some of the things you should consider when filling out your application form:
* Be honest. * Keep your personal and financial information as accurate as possible. * Do not provide false information. * Keep an eye on your credit reports and report any suspicious activity to the concerned agency. * Make sure that you submit all the required documents for the loan application. * Understand that if you fail to provide the necessary documents, your application will be rejected.
The duration of time that you have had your existing loan and the type of credit used to obtain it are also factors that they take into account. If you have been defrauded or you have applied for multiple blacklisted loans within a short span of time, then you may find it difficult to get affordable loans. If this is the case, then it would definitely be in your best interest to immediately repair your credit rating.
Most blacklisted loans in south Africa are obtained from reputable finance companies. However, there are a few unscrupulous finance companies that are more than willing to lend to blacklisted people. Unfortunately, many blacklisted people fall into this trap, by simply visiting a seemingly trustworthy finance company without making any research on the company’s reputation. When visiting a company’s website, make sure that you read the terms and conditions listed on the home page. It is highly advisable to use the services of an online blacklisted loan directory to ensure that you receive only legit offers.