Bad Credit Loans in Port Elizabeth
Do you want to make it in the real world? Do you strive to become a big shot business owner and show off your management skills in Waterfront Business Park or do you simply want to purchase the house of your dreams in Blue Horizon Bay?
The great thing about having access to information is that you can educate yourself on things that you did not know. Many people are not able to improve their lives because of how misinformed they are about bad credit. Many South African cities, especially Port Elizabeth, do not have many financial institutions that serve the public. That is why in this article, we will help you understand how credit is managed, scored and ultimately how to help you stay clear of the negative line. There are many forms of credit one can acquire through financial institutions, and more often than not, these include: – Credit card – Vehicle finance – Phone contract – Clothing accounts When it comes to taking out forms of credit like a home loan, your credit score plays a vital role in your eligibility for a home loan.
Not paying your accounts on time or at all can result in you not getting further or desired credit when needed. Lenders will see you as a high risk, meaning that should they decide to take on that risk, they will charge high interest rates compared to someone with a good credit score. Depending on what industry you are in, some industries such as banking, for example, check a potential employee’s credit report and score. They consider a bad credit score as someone who is not trustworthy to work in a banking environment. It is advisable for a consumer to check their credit report every three to six months. Statistics show that only 3% of the 24 million credit active South Africans have seen and understood their credit report. This comes as a threat of potential identity theft, where someone can use a consumer’s ID to clone their profile and open lines of credit. A credit report contains so much personal information, including addresses, phone numbers and employment, that the leak of such information poses a big risk of fraud to the individual.
When it comes to taking out forms of credit like a home loan, your credit score plays a vital role in your eligibility for a home loan, however, it’s not the only factor to affect your application, and your debt-to-income ratio will also play a big role. There’s no specific score which will qualify you. If you follow the steps to build a healthy credit score and maintain a healthy debt-to-income ratio, lenders will see you as eligible for things like home loans. Most lenders prefer to lend to an individual whose debt is less than 36% of their gross income. This, along with healthy credit habits that keep your score in the ranges above 650, will put you in a good position to secure a home loan.
It’s important to know that if you apply for any hard forms of credit like a personal loan, credit card or home loan, you will get a hard inquiry against your credit report, and too many of these are a red flag to lenders. If you have had an unsuccessful home loan application, take a step back and start improving your credit health. There’s no fixed time frame for this, and it will take as long as you take to form healthier credit habits, pay back debt and wait for that very happy green indicator on your credit report. For more information about your credit score and assistance in improving it, you can download the Moneyac app available on the Google Play Store. Alternatively go to the website where you can access your credit report and experts that can help with anything related to financial health.
Do you want to pay off your debts and build a better credit record or are you just looking for some spending money in the recession?
Is your bad credit stopping you from living the life you dream of? Why not take out a “Bad Credit Loan”? It is simple to do and if it is done correctly can be the solution to all of your problems.
If you have been blacklisted or have a lower than average credit score, you qualify for a bad credit loan. Don’t let bad decisions that were made in the past ruin your chance at a better and brighter future
What types of Bad credit loans are available?
There are various types of loans available to choose from and it is important to pick the one that is most suited to your specific need. The following are a few of the loans that are available:
Same day loans – No credit check
Debt consolidation loans
Bad credit installment loans
What is the difference between bad credit loans and normal loans?
Bad credit loans have a higher interest rate, which is fully understandable as the lender has a higher risk as you already have a record of bad credit.
Are there any risks involved?
As with anything in life, bad credit loans do have risks. It is recommended that you only use a trusted financial institute. Once you start applying for these loans, you might receive numerous phone calls from various people offering to lend you money. These are not the institutes you want to borrow money from, as they do not go through credit checks, which means they do not care about you. They are simply in it for their own personal gain. Rather look for a trusted financial institute where you can feel safe.
The following tips will help you choose the correct institute:
Rather apply for personal loans before applying for payday or title loans. Personal loans have been designed to be repaid and they come with lower interest. Secure loans the borrower offers something in return, such as a car or a house. This will make it easier for the lender to give you the loan at a lower interest as you will have risks involved too. A payday loan is designed as a trap to get low income borrowers stuck in a loop. They will make you pay for your loan and your debt will not get less as you might have hoped.
It is also important to build your credit. Just because your credit is not perfect, does not mean there is no hope in the future. Even if you have an emergency and need to take out a Bad credit loan, you need to be aware of the importance of building your credit record. Make sure to pay your bills on time and make sure to pay off your debts. Even if it is just a few rand every month, as long as the number is going down and not up.
Bad credit loans are available everywhere in Port Elizabeth and will be able to help with whatever you have planned for your future. You are not stuck, there is always room for improvement, even if that means getting some help from a few people here and there.