Credit bureaus are often the first stop for many lenders when deciding whether to grant an individual credit or not. These institutions are responsible for collecting and monitoring consumer and company credit data relevant to a person or company’s lending history and habits.While lending companies have access to individual’s credit record when they apply for credit, individuals are also able to access this crucial information.
More about credit scores:
Your credit report displays what debt you have incurred over the past 24 months and if there have been any critical changes to your credit profile. These changes may include negative listings such as a late payment to your account or non-payment, which could lead to a judgement against you.
Bad credit is the failure to keep up with all your payments and credit agreements. It may make it harder to get access to loans.
A credit score ranges between 300 and 850.
A credit score of below 620 is considered bad or poor credit.
Having a credit score of 500 is likely to mean that your financial options are limited and the interest rates you will be charged will be higher.
What are your loan options when you have a bad credit score?
Peer-to-peer lending may be ideal when you have a bad credit record, while home equity loans may be convenient when you have access to equity on your home.
Asking family and friends might also be ideal under such circumstances. It’s important to put the agreement on paper however.
Opting for a co-signer may make it easier to get a loan.
Where you can get 500 credit score loans:
Low Credit Loans
This financial institution offers loans from R1000 to R150 000, with 6 to 60 months to pay. With a simple online application, these 500 credit score loans are available to South African citizens, earning a monthly income of R3000 or more