Finding a loan while you have been listed on creditors bureau’s bad books can be difficult. A person who has a bad credit record will find it difficult to find a loan for the most important things like a car loan and home loan. We will discuss what options people have in getting loans from registered credit providers.
The National Credit Regulator (NCR) was formed to fulfill the requirements of the National Credit Act 34 of 2005. The act aims to:
- provide for the general regulation of consumer credit and improved standards of consumer information
- prohibit certain unfair credit and credit-marketing practices
- promote responsible credit granting and use and for that purpose to prohibit reckless credit granting
- provide for debt re-organisation in cases of over-indebtedness
- regulate credit information, among other details which you can read here
Although you may be blacklisted the act helps credit providers from putting people into even more debt without exercising the debt they are currently servicing. Be that as it may, you may still go and seek a loan from registered credit providers who will need to also work carefully not to put you in even more debt, or debt that you can’t service.
So, what ways can you get a loan even though you are blacklisted?
You may look for credit providers who will review your credit score and establish if even though you have a bad credit record they may be able to lend you money. Be careful that they are registered by searching for them on NCR database. Being a blacklisted individual may also attract a higher interest rate as you are still a risk.
You may apply to consolidate three or four major debts and reduce these by hundred or thousands or Rands a month. This is because a debt consolidation loan takes one major loan for all your major debts such as personal loan and credit card loans. You now will have only one loan with a stable interest rate. You may be asked for collateral such as your home, but this will depend on your debt and credit provider.