A common problem faced by citizens of South Africa when dealing with bad credit score is the availability of a reliable service that can take care of their urgent money requirement with the least financial risk and with minimum interest rates. Loans for Bad Credit South Africa are difficult to procure as every time you apply for a loan your credit score is scrutinised.
In case of clients who do not meet the required criteria and cannot be offered a loan, debt mediation is given. However even reliable companies cannot help in cases where there is debt review, liquidation or sequestration. But how do individuals or companies land themselves into such a situation? Low or bad credit scores can happen in mainly two kinds of cases. In the case of people who are in an extreme financial crisis either because of loss of job, or where expenditure has far exceeded generated income and they have been unable to pay their dues or bills. The other situation is where the individual concerned has never been involved in any kind of credit transaction and hence there is no credit history.
In South Africa, there are credit bureaus which track records of your repayment history and note how often, if ever, there are defaults in loan repayments. Some of the factors that affect your credit score are:
(i) Payment history
(ii) Accounts in use and new accounts
(iii) How long you have been credit active.
When applying for Loans for Bad Credit South Africa to wipe off bad debts, certain criterion needs to be met before the lending institution advances you a loan.
• You need to be between 21 and 60 years of age
• You need to be employed in one company for at least six months consecutively
• Your place of employment and period of employment will have to be confirmed
Self employed people are not eligible for such loans except in exceptional circumstances.
Beware of fraudulent companies. There are a dime a dozen companies that are offering bad credit personal loans. You need to check the bona fides of such companies before availing of their well-advertised services.
Many services exist for online loans. There is a great temptation to apply for loans because of the ease with which these agencies operate. They may also offer no credit check loan. You do not need assets or any kind of collateral. All you need is a South African id and proof that you are over 18 years of age, and you can have access to personal loans at the click of a button.
If you do apply for a loan, ensure that the site and the institution involved is genuine.