Do you have a bad credit score?
Did you know that as you read this you might be blacklisted? Becoming blacklisted and getting a bad credit score is not at all uncommon, in fact many people are in the credit bureau’s bad books without even realising it. It is something that happens and while it is incredibly unpleasant and unwanted when it does happen, there are a few financial options open to you, should you need money but be unable to apply for a conventional loan.
The bad credit loan
A bad credit loan can take on any form. It can be a consolidation loan, a personal loan or a cash loan and most times what you use your loaned money on is all up to you. The only reason that it gets called a bad credit loan is because it is a loan made available to those who have bad credit. It is as simple and as complicated as that.
South Africans have a problem with credit. We spend too much of our plastic money and we sign up for too many promises to repay loans with money that we don’t have. With our credit issues we are now more than ever before having to face being taken to court or placed under debt review. It is no way to live and it is no way to start out your life.
Asking the right questions
Regardless of your reasons for taking out a loan, you need to ask yourself these few questions to make sure that you are making the right choice for right now and for the future:
What is your credit score?
As a blacklisted person you might wonder why your credit score should matter. After all you are applying for a bad credit loan for a reason. But even if you are in a bad financial place, the company who you would like to loan from can still decline your application based on your credit score. It will vary from company to company but generally having a look at your credit score is the norm.
What does the bad credit loan application involve?
The loan application is the one thing that we all have to go through when we want to apply for any type of loan. What you need to find out is what paperwork you will have to bring to the table as well as get an idea regarding the time it will take for the loan to be approved. You should also find out when the bank will be paying the money over to you.
Is there an application fee?
With most loans there will be an application fee to pay. This is where you need to shop around a bit as the application fee can change from company to company which means that while one company might charge you the earth, other companies will charge you a minimal fee. Find out how much you will have to pay out and be prepared to pay the fee when the time comes.
What is the interest rate?
An interest rate can push up your monthly repayments. Interest tells you how much money you are being charged for taking out the loan. If the interest rate is high then that means that your loan is expensive. The interest rates on loans will be a whole lot less than the interest rates on a credit card. Again it is smart to shop around a bit and find the loan that has the lowest interest rates.
Is there a specific way I must use my money?
While some bad credit loans can be used for anything, there are some companies that are going to be very specific regarding what you can spend your money on. For instance if the loan is to be used on a home or car then your bad credit loan will need to be used for this exact purpose. If you need a loan to pay off debt it will be best to apply for a loan for that purpose rather than to apply for a loan that is unrelated to your needs. Make sure you know what you need to spend the money on before you apply for the loan.
At Budget Cash we have the bad credit loans and blacklisted loans that will help you to see out your financial difficulties. Before you attempt a different path out of financial ruin, let us help you.