There are a number of reasons that can lead to people having a bad credit score. When your score is bad, the chances are that you are active in the credit market, but due to unforeseen circumstances like losing your job or some financial difficulties and you have not kept your accounts up to date, you end up with bad credit. In this article, we will explore ways in which you can qualify for loans for bad credit in South Africa.
Having bad credit in South Africa can be a stumbling block in a number of ways. There are many microlenders offering loans for bad credit in South Africa. Many of these institutions are available online and have simple qualifying criteria. Likemoney does a credit check and finds you a loan provider to suit your needs and possibly your credit score. Apply for a loan here. Click on the “calculate payment & apply online” button.
In order to qualify for loans for bad credit in South Africa, you need to be in permanent employment for at least six consecutive months, and you need to prove affordability. Lenders need to see that you are in stable employment and will be able to afford repayments comfortably. In this case, your affordability is more important than your creditworthiness.
You will also need to have a valid South African ID and an active bank account in your name. Keep in mind that interest rates charged may be higher. You will be considered a higher risk to lenders. If you want to improve your chances of getting lower interest rates, the best thing you could do for yourself would be to try to improve your credit standing. You must make sure that you repay all your outstanding debts and keep up to date with any current debts you have.
If you have never bought anything on credit, financed something, had a credit card or store card, you likely have no credit history. If you have no credit history, getting a loan may also be a challenge at times. This is mainly because lenders have no way of ascertaining what your payment habits are. Once you are approved for loans for bad credit, make sure that you pay them off on time, so you avoid accumulating more bad debt.