Blacklisted loans are types of loans that are given to applicants who do not have a clean credit record. Loans for blacklisted people charge a little bit higher interest because of risk they pose on the creditor. Many people in South Africa do not have a good credit record and this number is growing everyday.
Blacklisted Loans Advantages
The advantages of blacklisted loans is that you are given a chance to get financial assistance without having to clean your credit record first. Most creditors still perform credit check but do not disqualify you because of the results.
Blacklisted Loans Interests
The interest charged on these types of loans varies as per your credit scoring. You do not get disqualified because you are blacklisted. It is important that you keep your accounts payments up to date all the time. Some creditors will increase loan interest if you default on a single payment. If you think you might miss a monthly payment, you need to contact the creditor and let them know.
Blacklisted Loans Disadvantages
These loans are not recommended in that you are only growing or increasing your indebtedness at the same time. If you know that your financial situation might be changing for the better, than you can consider taking blacklisted loans to cover some of your expenses.
How To Apply?
There are many ways to apply for this type of loans in South Africa. Almost each and every city and town has some kind of financial support of this nature. We must advise you that always make sure that the creditor is registered with NCR. Your information like ID numbers and address is always at the hands of the creditors. Working with creditors that are not registered can be a high risk then.
The National Credit Regulator (NCR) was established to protect lenders from creditors who abused them when it comes to interest rates charged on blacklisted cash loans and other forms of loans. Blacklisted loans people are always exploited one way or the other.