Loans When Blacklisted

Getting loans when blacklisted is very difficult, but still, there’s hope at MoneyStar®.

Is there a credit blacklist?

There is nothing like a thing ‘blacklisted’ for credit. However, there are some situations where the lender or company might reject you getting new credit products like loans and credit cards.

Every lender has their eligibility criteria, which might vary from lender to lender. For instance, some lenders are only interested in lending money to poor creditors, while others offer their services to high credit scorers.

When you declare yourself ‘bankrupt,’ all lenders prohibit you from lending activities. At this stage, you are not able to get new credit. Though you can apply for a new credit after your ‘bankrupt’ period is over, it might be challenging.

Being credit blacklisted is just a misconception term in South Africa. Blacklisted are those whose banks and other financial institutions decline due to poor credit scores. Nothing would prevent you from applying for a loan or new credit.

Many payday lenders offer payday loans for blacklisted in South Africa. But you can afford your loan and make repayments on time.

Top 5 options of loans when blacklisted in South Africa

You can consider 5 types of loans when you are blacklisted.

Best 5 options of loans for blacklisted:

1. Secured loans:  Apply for secured loans based on any of your assets because lenders need that to cover their loss after you are failed to repay their loan.
2. Payday loans: Payday loans are also a good option if you are blacklisted. These loans have high-interest rates due to a time limitation.
3. Cash advance: You can apply for cash advance loans on the limit of your credit card. It can be costly, but you will have instant relief from the money shortage.
4. Personal loans: Personal loans can cover expenses that you have encountered unexpectedly. You can do extensive purchasing, or else you can consolidate high-interest debts.
5. Co-signed loans:  Co-signed loans always stay within the choice. Any acquaintances with a good credit history can get you the money, but they will be liable for making payments if you are not severe.

So how much can I borrow?

Commonly, borrowing depends on how good your credit history is also the type of lender you have approached.

Still, you can borrow the maximum loan amount from R100 up to R50000 from some reliable lenders based on some factors.

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How long do I have to pay it back?

Some blacklisted loans will be repaid once you get your next payday, in 1 to 2 weeks.

Pay off your loan on time to avoid high-interest rates or other penalties. If you don’t pay your loan, fees, and other charges continue accruing.

What are the eligibility criteria for blacklisted loan?

An eligibility criterion depends from lender to lender. But frankly speaking- there are some easy requirements of many online lenders.

Some general requirements:

• Age: Your age is the most critical factor; it should be a minimum of 18 or above.
• Income: Make sure you have a stable income source to repay your loan on time.
• Address proof: Your residential address proof is needed while meeting eligibility criteria.
• A bank account: You must provide your active bank account for receiving money because all online lenders deposit money directly into the bank account.
• Contact details: You need to provide your contact details, including your email id and mobile phone number.

Above are some basic requirements and if you matched with them, you may qualify for loans when blacklisted in South Africa.

What are the causes of credit blacklisted?

You need better credit or negative things related to your credit score. They are the basic symbols that made you blacklisted by credit bureaus (Experian, TransUnion, and XDS) of South Africa.

Above some basic causes that make your credit blacklisted by the credit agencies so you can keep a distance from them. This will keep you safe from getting your credit blacklisted.

How can I remove my name from blacklisted?

There are specific techniques that can help you out for removing your name from being blacklisted. You can go through them and act upon along.

Blacklisted removal effective techniques:

• Pay outstanding debt: Debts you haven’t paid yet; you must pay them as fast as possible to avoid being in blacklisting.
• Identify the reason: There must be a valid reason why your name was blacklisted; you have to find out and work on it for a solution.
• Make a request: You can request your creditor, who can write to the credit bureau, to get your name removed from the blacklist. You will have a time from 7 to 20 days until the name is removed.

How can improve your credit score- Quick tips!

It is not possible to improve your credit score overnight. Though, there are some steps that you need to follow seriously to boost your credit rating gradually. Some tips are mentioned below:

• Stick to regular payment: Your payment history matters for your credit score. You need to pay a small amount every month if you can’t pay a higher amount. It can better work for you.
• Check errors and report: The most important thing you can do is review your credit report occasionally. Fix the wrong information if you find it at all at the same time through dispute. Once you do that, your credit score will take a jump.
• Close credit card account: Close your useless credit card accounts; you are working against you. You can improve your credit score by closing them as fast as you do that.
• Be an authorized user: Be an authorized user to any acquaintances who have maintained their credit. You can ask them to add you as an authorized user to their account for your credit score improvement.

Micah Sedres

MoneyStar expert Micah strives to navigate finance niches like credit cards, loans, and mortgages easily. She helps hundreds of readers in credit building and provides money management tips. After regularly working for brands like Businesslive.co.za, she joined the MoneyStar.co.za team as a staff writer to develop credit product reviews and comprehensive guides mainly focused on credit scores and loan/card offers.