Personal Loans with Bad Credit – There are numerous reasons that can lead to people having bad credit. When this happens, 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 you accounts up to date, you end up with bad credit.
It’s no secret that it can be highly challenging to get personal loans with bad credit. While it can be challenging, it isn’t impossible.
There are various options available and you need to be as realistic as possible. It’s important to make sure that you only work with only registered credit providers, who are National Credit Act-compliant.
To qualify for personal loans with bad credit in South Africa, you generally need to be in permanent employment for at least 6 consecutive months and you need to prove affordability. Lenders want to see that you are in reliable employment and will be able to afford repayments comfortably. In this case, your affordability is more important than your creditworthiness.
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. Make sure that you repay all your outstanding debts and keep up to date with any current debts you have. Before applying for personal loans with bad credit, you could first consider getting a secured loan. If you have assets, you can put these up as collateral.
You need to carefully assess the risks associated. If you have no assets to speak of, you can consider taking out an unsecured loan. Keep in mind that these loans usually have high interest rates. You could also get a co-signer for the loan. This could significantly improve your chances of qualifying for personal loans with bad credit