How To Apply For A Loan With Low Credit Rating

By Dave Nyam •  Updated: 02/20/24 •  5 min read

Navigating the financial landscape in South Africa is tough, made worse when one has a low reading loan score. Yes, one would want to give up if a first loan application might unveil this menace. Many credit lenders are willing to offer money to those with low credit scores or tainted credit records. The article below provides ways to help secure a loan despite a low credit score

. We take a detailed look at borrowing with a bad rating, how a poor loan reading affects the overdraft application, and ways to effect an increase in your loan scores.

How To Apply For A Loan With Low Credit Rating

You may think getting debentures is impossible if you have a sunken rating. But that this isn’t true. Hard to believe, but there are financial institutions out there patiently waiting for you to reach out to them, even with your credit score below par. They are willing to trust you with their money; it’s just up to you to show them how you can repay them. So, how does one go about the loan application process in South Africa with not that impressive credit? Let’s get right into the meat of things and find out.

Can I Borrow Cash With A Low Loan Score?

Now, the problem with a bad rating is the doubt about whether you can still access advances to facilitate your various needs, either personal or business. In the affirmative, it is somewhere beyond the traditional banks and lenders. However, some alternative lenders and products exist for those with low credit scores or a bad credit history. Among the products, there are:

These may have higher interest rates and fees than a standard advance, yet they can help you still access an overdraft and develop your scores over time.

Where Can I Borrow Money If I Have Bad Credit in South Africa?

In some sources in SA, it is possible that even if you have a low-rated loan record, you will still get the overdraft. These would be:

How A Low Credit Score Will Affect Your Loan Request

A low-rated reading might affect your application for the advance altogether or drive the chances too low, while the terms and conditions of the overdrafts could be very stringent. Some of the impacts one can be subjected to because of a low score include:

How Do You Fix A Bad Credit Rating?

To repair your bad-rated loan reading, stop adding to the arrears and pay down the existing ones. You will also need to check your credit report for inaccuracies and negative information, disputing the same where necessary. Make sure that all your bills are paid on time, and if possible, retain the old accounts you may be closing since, upon closure, they may easily ruin your credit history. In need, you can also approach a debt counselor for professional advice.

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