Bad Credit Loans
If you have bad credit and want to acquire a loan then you may have been refused because of your credit score. If you need extra capital then a bad credit loan could be what you are looking for as they are created specifically for people with a poor credit score in mind. Not only will you have access to the money you need but as long as you stick to the loan agreement they can be used to rebuild your credit rating. If a bad credit loan is what you are looking for then make sure that you compare as many different loans as possible before you apply. The interest on these loans will vary and some can be a lot more expensive than others. Bad credit loans are offered by many lenders in South Africa and we have listed below some of the top loan providers on the market. Use the chart to compare all the features of each loan to find the one most suited to your lending requirements. It is extremely important to read all of the terms and conditions for any loan you might apply for. Some loans may have certain charges which you might not be aware of. It is also sensible to understand the detail of any financial obligation you are getting into.
Compare Bad Credit Loans
If you have bad credit or have been refused elsewhere a bad credit loan can come in handy. However, make sure you know the facts before you apply.
Have Bad Credit? You are not alone
Bad credit affects a lot of people.
Credit reports are easily damaged, simply by missing credit card and loan payments you can damage your score. Having a poor credit rating will be used against you when you apply for financial products like loans and credit cards. This is because people with bad credit reports are considered to be more of a risk. People with better credit histories are not only more likely to get accepted for the products they want but they will also be offered better loan conditions.
What are you loan options if you want a loan but have been refused elsewhere?
What is a Bad Credit Loan?
A bad credit loan is especially designed for people with a bad credit history and those who have been refused for a loan elsewhere. When compared to a payday loan you will find you can borrow more money for more time with a bad credit loan.
Bad Credit Loans can help you rebuild your credit rating
Many bad credit loans come with useful credit rebuilding facilities. You can rebuild your credit rating or if you have no credit rating start from scratch. As long as you are responsible and make payments on time your credit rating will improve which will result in better loan conditions in time. With a better credit rating you will be able to borrow more money and be offered lower interest rates in the future.
Treat Bad Credit Loans with caution
The main disadvantage of a bad credit loan is the interest rate. These loans come with notoriously high interest rates because lenders see you as high risk because of your financial history.
You need to make sure you make your payments on time because if you default on the loan repayments not only could you fall into debt but you will damage your credit rating even further. As the interest rates are high and late payment charges can be expensive the debt can easily accumulate.
Be careful with secured bad credit loans because if you miss payments then ultimately you could have the asset you put against the loan taken away from you.
Where to find Bad Credit Loans
There are a lot of bad credit loans on the market. You need to make sure you find a loan that has reasonable interest rates and is clear in its terms and conditions.
Compare lenders in the table above to find the loan most suited to you.
Things to remember when comparing bad credit loans
The interest rates offered to those with a poor credit history is usually significantly higher than those advertised with high street banks. It is important that you compare the headline rate with bad credit loans, not any promotions or examples. The longer you take to repay the loan the more you will ultimately repay.
06 May 2013
People who have been refused for a loan can still apply for a bad credit loan
07 March 2013
People who have a bad credit history, and have been refused for a loan, think they cannot have a car as a result of this – but the reality is that it has become easier to still be able to find car finance even if you think you have been blacklisted.
17 July 2012 18:00
If you are suffering from a poor credit rating then a bad credit loan can help you. Your credit rating is often checked when applying for various loans therefore it is important to make sure that your financial past is in order so that you can be approved for the money you need.
21 May 2012 16:00
Which Way to Pay
One Stop Financial Solutions can facilitate unsecured loans for people with bad credit between R550 to R15000. They offer payday loans, bad credit loans and consolidation loans and a simple application procedure that will result in fast approval.