Bad credit loans for blacklisted people are quite difficult to acquire through ordinary loan providers in South Africa. The difficulty with needing to borrow money when you have a terrible credit record is that nobody wants to give you any money. A bad credit rating shows that you have had difficulty making your repayments in the past and gives banks and lending institutions no reason to provide you with more funds to mismanage. The trouble arises when you need things like secured vehicle loans or home loans. If you have to move outside of the circle of traditional institutions you are likely to encounter high interest rates and a number of other further difficulties.
In a world where many people need to borrow money bad credit loans for blacklisted people are at the end of most banks’ lists. A credit record begins when you begin to spend, open accounts, and make repayments. Unfortunately with the unemployment levels as high as they are, many people need to spend more than they earn which results in an inability to make repayments on time. This means that the people who cannot repay have marks against their name in banks and the offices of loan providers. When you need secured vehicle loans this is the last thing you want to put on your application, because it means that you’ll get a high interest rate.
There are ways to get more finance, but what you need to think critically about is whether you really need it. Sometimes more loans will mean more loans as you continue to live beyond your means. What might suit you more is a debt consolidation loan, or debt counselling, to improve your credit rating.