Many people believe the term blacklisted means totally condemned and unworthy. This may be true to some extent, but it’s definitely not what it’s all about. Throughout this article, you’ll learn about the various credit services available for people who have been blacklisted for one reason or another.
What does it mean to be blacklisted?
When you are blacklisted, it simply means that the financial organisation thinks you are a potential risk to the service they provide. It is important to note that the term blacklisted is deceiving, as there is no so-called official ‘blacklist’. You are blacklisted because of failure to merge and repay their debts and bills.
How do you know you are on the blacklist?
Today, everyone in South Africa can receive one free credit report from any credit provider operating locally once a year. You can also find your account status, credit score and a credit summary from some companies for a small fee. Note that no company will ever tell you you’re blacklisted.
What is a bad credit score?
A credit score is a number ranging from 300 to 850. This number shows how good your credit rating is. It depends on positive or negative information found in your credit report. This information includes:
- Amount of money that you owe
- Payment history.
- Activity on a bank account.
- The age of your accounts.
- Credit checks that have been carried out on you
Also, your credit score simply shows all your good/bad financial behaviour.
How does being blacklisted affect you?
Being on a blacklist can stop you from getting a loan to buy valuable assets like motor vehicles, property or even starting up a business. Yet, being blacklisted is not as bad as it sounds. A great number 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 necessary steps to repair your credit history or not. This determines how long you will stay blacklisted.
How do loans for the blacklisted work?
In blacklisted loans, lenders operate under the golden rule: If the borrower defaults on any of the payment terms, the lender is covered by the value of the collateral. They may confiscate and sell the valuables to cover the cost of the outstanding loan plus interest.
What type of loans can I get if I am blacklisted?
Being blacklisted doesn’t necessarily mean you are worthless. There are still a few services you can use. Some of these include;
Some private lenders offer blacklisted individuals micro loans for a short period. These are unsecured loans with hard conditions and high interest rates. Borrowing an enormous amount becomes very difficult because repaying interest plus the loan amount can become exorbitant.
The easiest way for blacklisted people to get credit through this type of loan is to provide an asset that belongs to them as collateral. The lender reserves the right to take possession of the asset in the event of default or breach in repayment terms.
You can secure the loan against your car, land or property, however, it is imperative to note that you’ll lose your property if you don’t repay the borrowed amount.
Financial providers that grants loans to the blacklisted
Here is a quick list of companies that offer loans to people with bad credit.
ATARA Finance is one of the best providers of loans for those with bad credit. They provide a simple way to apply for these loans online. With an approval rate of 75% and a minimum amount needed. ATARA offers a minimum loan of R1000.00 and a maximum of R300 000.00. So, are you struggling to get a loan with bad credit, stress no more than ATARA loans, got everything you need and more.
Lime loans operate with a team of highly trained personnels and a combination of machine and technology. They’ve built the platform uniquely to serve their clients, even clients with bad credit.
Are you in urgent need of finance but have a bad credit score? Ezi Finance can hook you up with a credible lending institution. Ezi finance acts as an intermediary between borrowers and credit institutions. With an Ezi Finance, you don’t have to be running around sourcing for the best loans for your needs.
Other financial providers that offer bad credit loans include;
- Nexcap Finance
Before actually applying for any of these loans, be sure to do your personal check on the terms and conditions of each of the companies. It’s wise to weigh all the options and choose the best of them.
If you are in dire need of credit, but you are on the “blacklist”, do not give up hope. There are still several reliable financial service providers out there willing to give you the money you need.