Loans for bad credit
What is a bad credit loan?
Bad credit or a low credit score can be divided into two explanations:
Many loans are given every day to so many different people with bad or no credit, as long as you pass the income and expense verification as well as some business rules that’s in place to protect credit providers.
What is an unsecured loan?
When one takes out an unsecured loan, the loan you’re getting doesn’t hold any of your assets as security. The interest rate and the monthly payments are mostly fixed over the term of the loan and can be anywhere from 1 month up to 84 months, depending on the company you’re borrowing form.
The fixed payments work in your favour as that really helps with your budget every month, but to be safe always read the small print carefully and make sure you always ask all questions that concern you.
The interest rates can be anything from 2-5% a month depending on the loan product. This is the max allowed by the NCR regulations, so the rate of interest you get is calculated based on your individual risk profile. So should you have a poor credit record you can still get a loan, but in most cases it’s at the highest interest rate.
The reason being is because you’re considered as a client with bad credit and is therefore a high risk. To offset this risk, lenders charge you a higher rate, so it’s best to look for the deal before signing anything. The amount you borrow can also affect your repayment so it’s always best to only take the amount you need.
Is an unsecured loan right for you?
Only if the money you’re borrowing is for a non-fixed asset like your car or house. This is an unsecured loan. An unsecured loan or personal loan is basically a loan with a longer repayment period, not like a short term or payday loan which can only be pay back in a small period of time. The types of loans that actually are different are loans like Home loans, vehicle finance and asset based secured loans. These types of loans have a completely different set of criteria and rules compared to unsecured loans.
African bank offers loans for bad credit.
Alternatively try Debt Consolidation which is a task of combining several unsecured debts from different creditors into a single loan.