How to Get Loans with Poor Credit

How to Get Loans with Poor Credit

Getting access to loans is a priority for many South Africans nowadays. While some people can afford to pay for goods and services using cash, not all people can afford this. In addition, many more people are facing unexpected expenses which can put a major dent in their savings. This is one of the main reasons that people are opting for personal loans to help them make it through financially challenging months. 

While getting a personal loan can be an ideal solution, there are some people who have can’t get loans with poor credit.

There are many reasons why people can have poor credit. Loss of employment or an inability to work because of disability or illness can render many people helpless and leave them unable to service their debts. Missing one or numerous payments will have an adverse effect on your credit record, which ultimately reflects as a poor credit record.

Having poor credit is something that can hinder you from gaining access to further loans. You will typically be viewed as a high risk customer who might default and as a result, you may face a challenging time getting loans with poor credit.

What are your options when looking to get loans with poor credit?

You can always start off by asking for a loan from family and friends. It’s always prudent to create a written agreement in order to avoid any misunderstandings.

You can opt for peer-to-peer lending, which is an online platform that allows you to borrow directly from an individual instead of from an institution.

If you have equity on your property, you could get a low-interest, tax-deductible line of credit. This option is high risk because you could lose your property if you default.

The micro lending sector in South Africa is growing rapidly, so there are various organisations dedicated to rehabilitating those with poor credit records. Depending on the misdemeanour, the process can take anything from 3 to 12 months.

Categories: Loans