Personal Loans for Low Credit Scores
January 9, 2015
If you’re a South African citizen and looking for personal loans for low credit scores you need not panic. There are numerous loans services available to people who have been blacklisted or simply have low credit scores.
Personal loans for low credit scores
Searching for loans for people with low credit scores online is convenient and as long as you meet the various lending criteria, you could be eligible for cash loans. However if you are undergoing debt counselling, debt review, or liquidation, in addition to low credit scores your application might be rejected.
Another handy thing about searching for loans for people with bad credit online is that it takes very little work. The website will do it all for you, liaising with the major banks and lenders. Don’t be embarrassed about low credit scores.
The Ts and Cs
It’s important to bear in mind that personal loans for low credit scores are typically issued with higher interest rates, depending on your credit profile and credit record. For those with low credit scores or who have been blacklisted, lenders will consider a high risk customer. So while you may qualify for a loan, you’ll have to pay back a higher interest rate for personal loan for low credit scores.
What Type of Loans Are Available?
- Payday loans for low credit scores
- Personal long-term loans that last for longer than 6 months and up to 60 months with lower yearly interest rates.
- Personal short term loans that last for up to 6 months. These loans are quick to apply for.
- Personal large loans are usually for more than R15 000 and up to as much as a million rand. These loans typically have lower interest rates than smaller loans.
- Personal small loans of up to R15 000 from small lenders are quick and easy to obtain.
- Consolidation loans are great as personal loans for low credit scores when you want to stop paying the small cash, short term loans and amalgamate them into larger loans, paying less per month.
What Are the Qualifying Criteria for a Personal Loan Application?
- Personal loans low credit scores are usually ok when applying online for a loan
- You should be a South African citizen in possession of a valid ID book
- You should be younger than 63
- Lenders vary but ideally you should earn more than R3 500 per month when applying for personal loans
- You should have been with your current employer for 6 months or more
- You should receive your salary in your own bank account at FNB, Absa, Capitec, Standard Bank or Nedbank
- Usually you won’t be eligible if you are a domestic worker, self-employed, a temp worker or only earn a commission
- If you can’t afford to take on more debt, you can’t apply for a loan. You have to have funds available to repay the loans or debt consolidation.
- You many not apply for personal loans for low credit scorse if you are under sequestration, administration, debt counselling or liquidation.
The above pointers are only basic guidelines. While it is quick and easy to apply for loans online there is no guarantee that you will be awarded personal loans for low credit scores. The lending criteria tend to change for consolidation and personal loans.
Remember also that applying to too many lenders does not bode well for your credit score. Let us find the best possible deal for you so that you can sort out your cash flow problems.
All info was correct at time of publishing