What Is A Bad Credit Loan?
Bad credit loans are loan given to people with a bad credit record and are struggling to obtain a personal loan from the bank.
This type of a loan is also called blacklisted loan. Institutions like banks have very strong policies regulating they product offerings like personal loans, credit cards and even home loans which makes it difficult for people with a bad credit record. This is because banks are more stricter when it comes to credit.
The number of financial institutions offering unsecured credit is growing very fast in South Africa. These institutions offer bad credit loans to people looking for finance. These are easily accessible and they approve loan application in just 24 hours.
The bad thing about bad credit loan is that the interest is always higher than that of banks. Some bad credit loans will charge more than a double of the initial loan capital which makes it almost impossible to finish that loan.
We encourage people to make sure that they keep their financial record very clear and to avoid being blacklisted. It always helps to keep a good relationship with financial institutions assisting you with financial help. It your account goes into arrears, just arrange with the creditor to get much more relaxed payment terms to avoid blacklisting.