Loans for Blacklisted People
What does it mean to be Blacklisted?
When you are labelled as blacklisted, it simply means that financial organizations think you’re a risk. It’s important to be aware that the term blacklisted is deceiving, as there is no so-called ‘black list’. In South Africa, people are generally considered blacklisted due to failure to consolidate and repay their debts.
How to check if you are blacklisted
In SA, everyone is entitled to one full and free credit report once a year from any credit bureau operating locally. Apart from that, some companies can give you your account status, credit score, and a credit summary for a small fee. No company will ever tell you that you are blacklisted, as such a list simply does not exist.
What is a bad credit score?
A credit score refers to a number ranging from 300-850 that shows how good your credit rating is. It depends on positive or negative information found in your credit report. This information includes the following:
- amount of money that you owe;
- payment history;
- activity on a bank account;
- the age of your accounts; and
- credit checks that have been carried out on you
Ultimately, your credit score simply shows all your good and bad financial behaviour. If you want to improve your credit score, read these 13 tips on how to increase your credit score quickly.
How does being blacklisted affect you
Being blacklisted can stop you from getting a loan to buy valuable assets like motor vehicles or property. Yet, being blacklisted is nothing to be ashamed of. A lot of professionals have found themselves on a credit blacklist at one point or the other.
Am I going to be blacklisted forever?
The answer to this question depends on whether you are taking steps to repair your credit history or not. This is what determines how long you will stay blacklisted. Your chances are greatly improved if you show proof of debt consolidation.
Fix your bad credit history
The good news is that it is quite easy to fix your credit rating, and this will help you to attain debt consolidation. Once that is done your name can be removed from the credit blacklist. Debt consolidation and credit repair can get you right back on track.
Which type of loans can I get if I am blacklisted?
Some private lenders offer short term micro loans for blacklisted people. These are a type of unsecured personal loan, but they often come with difficult conditions and higher interest rates. It becomes quite difficult to borrow a large amount because paying back the interest plus the loan amount can become too expensive.
These are the easiest to obtain blacklisted loans. With this type of credit, the lender accepts an asset that you own as collateral or security that you will give back your debt. You can get this loan against your car, property and more. However, you risk losing your property if you don’t pay back the loan amount.
Bottom line
Urgent loans for blacklisted people are available if you find yourself in a tight financial situation. Even so, it is always better to actively pay back your debts so you can get your name removed from the blacklist.
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