Some people feel the term “blacklisted” means totally condemned and unworthy. Though this to some extent true, it is definitely not as bad as it sounds. During the course of this article, you’ll get to know the various credit services available for people who have been blacklisted for one reason or the other.
What does it mean to be blacklisted?
When you are labelled as 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’. In South Africa, they generally label people as blacklisted due to failure to consolidate and repay their debts and bills.
How do you know you are on the blacklist?
In South Africa today, everyone is entitled to one full and free credit report once in a year from any credit provider operating locally. Apart from that, some companies can give you your account status, credit score and a credit summary for a small fee. Let it be known that no company will ever tell you that you’ve been blacklisted. As such, a list simply does not exist.
What is bad credit score
You can see a credit score as 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 the following:
- amount of money that you owe;
- payment history;
- activity on a bank account;
- the age of your accounts; and
- credit checks that they carry out on you
Additionally, your credit score simply shows all your good and 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 nothing to be ashamed of. 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?
Lenders specialising in blacklisted loans work on a golden rule. Loan is granted on the premises that if there’s a default on any of the payment terms, they are covered by the value of the assets you have pledged as collateral. They are legally entitled to confiscate and sell the valuables to cover the cost of the outstanding loan plus interest.
Which type of loans can I get if I am blacklisted?
As stated earlier, being blacklisted doesn’t mean you have been totally condemned. There are still a few credit services you can enjoy. Some of these credit services includes;
- Payday loans
Some private lenders offer short term micro loans for blacklisted people. This is a form 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 exorbitant.
- Secured loans
These types of loans are the easiest to obtain by blacklisted people. With this type of credit, the borrower has to provide an asset that belongs to them as collateral or security. This is so in a situation of default or breach in payback terms, the lender reserves the right to claim the asset.
You can get this loan against your car, landed property or more. However, it is important to note that you risk losing your property if you don’t pay back the loan amount.
Financial providers that grants loans to the blacklisted
Here is a quick list of companies that offer loans to people with bad credit.
- Atara365 Loans
ATARA finance is one the best credit providers that offers bad credit loans. They offer easy and convenient ways to apply bad credit loans online. With a high approval rate and a minimum info required, 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 as ATARA loan’s got everything you need and more
- Lime loans
Lime loans operates 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.
- Ezi finance
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;
- Blacklistedloan.co.za
- 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 available options and choose the best of them.
Conclusion
If you find yourself in a financially tight corner and in dire need of credit service but you are on the “blacklist”, do not give up hope. There’s a score of financial service providers out there that are willing to provide you with the finance you need.