Need to get a loan with bad credit? Gone are the days when if you have a bad credit rating or are blacklisted, you could not get a loan. Many financial institutions have realised that the economic downturn or recession that occurred in 2008 caused individuals with good credit ratings to end up in the black.
This is because hundreds of thousands of people lost their jobs and were unable to pay off their monthly instalments. As a result, these financial institutions have started offering bad credit loans to people as a means through which these individuals can get their credit ratings back to where they used to be. There are now a number of ways in which you can obtain a bad credit loan.
- Private financial institutions
Private financial institutions not only offer bad credit loans, but do so with minimal effort on the part of the lender. Many of these institutions have online portals whereby individuals can apply for a loan via the Internet.
All you have to do is fill in an application form online and they will determine what size loan they are prepared to give you. There are certain factors that will help you obtain a loan such as having permanent employment. These financial institutions however do normally charge higher interest rates than you would obtain from a traditional bank as the risk for them in lending you the money you need is far greater due to the fact that your credit history is poor.
However, should you be able to afford the interest and the monthly instalments, you may be able to get back to a place where your credit rating is good again. It is important however that when you are searching through the private financial institutions that are offering you bad credit loans, that you check that they are registered with the National Credit Regulator as these institutions will therefore be governed by the National Credit Act.
Another important thing to realise is that as these types of loans are considered to be unsecured loans. This means that you do not have to use your house, or car, or anything else of value as collateral against the loan in order to secure it. Should you therefore be requested by one of these private financial institutions to do so, you can report them to the credit bureaus.
- Family members
Need to get a loan with bad credit? Why not consider asking your family for help.
Although borrowing money from family can be tricky and is usually advised against, this may be one way of getting out of your financial rut. No one wants to see their family members going through a hard time and should you have family that have the means to lend you the money, then there is no harm in asking.
What is also great about these loans is that family will generally not charge you ridiculously high interest rates and this means that you will be able to pay back your loan. Should you however not be able to pay back a monthly instalment or the loan in its entirety then this could cause damage to your relationships so this is only advisable if you have a strong relationship with the family members that are providing you with the loan.
Having a bad credit rating or being blacklisted is not the end of the world. There are people that are willing to help you out. There are even lawyers out there who deal specifically in this area and can help you with debt consolidation so that you can pay off your debt in a responsible manner. There is hope for those of you who are blacklisted, you just need to do some research and find out what options are available to you.