Loans for people with low credit stores may seem like something that are impossible to get. However this is not the case as more and more people realise that there is a market that is being neglected by the banks and therefore they can capitalise on this in some way.
Although getting a loan from the bank is generally considered the safer option as banks are governed by credit laws, should you be denied, there are other avenues open to you. There is no need for you to keep purchasing things on your credit card and get yourself further and further in to debt when you can investigate the following options available to you.
Debt consolidation loans:
Instead of paying the minimum amount on your credit card and other debts every month whilst increasing the overall debt amount every month, why not consider applying for a debt consolidation loan. This type of loan will help you get back on your feet and you can take out this kind of loan in two ways. Firstly you can extend you bond in order to cover the outstanding debt. This is preferential as you are more likely to have a reduced interest rate than you would if you were to take a personal loan. If you take out an extension on your bond, you will receive some of the following benefits to consolidating your short term debt such as improved cash flow, reduced interest rates, reduced monthly instalments, and as this all falls under one account, your debt management may become much easier to manage.
Secondly, a personal loan can be taken to cover your debt amounts. You may think that that higher interest rate is not worth it, but in the long haul it may improve your overall credit rating and therefore will be more beneficial in the long run. There are a number of organisations that you can apply for these loans from should you not be able to receive a loan from the bank and some of them can even be found online.
Should you not wish to consolidate you debt and you are still looking for loans for people with low credit scores you can visit a microlender.
Microlenders are organisations that take people’s money as an investment and then loan that money out to some else in order for the lendee to make money off of the interest that the lender has to pay. This is a great system especially in a country like South Africa where not everyone can afford to invest great amounts in stock trading and property development. Microlenders therefore facilitate the loans between individuals and ensure that each party benefit from the loan. These microlenders usually offer loans from as little as a few hundred rand to many thousands of rands, depending on what is required and how many individuals they have that have invested in their organisation. What is even best about these organisations is that they do not charge exorbitant interest rates. Do not get me wrong, they generally are more than what the bank will offer but they are a lot less that the interest rates offered by loan sharks with no ethics.
The best thing about both of these options is that you can build up your credit history again so that in future, you can take a secured loan from the bank. Personally I would recommend taking out a debt consolidation loan on your bond if you can as you can manage your debt from one place effectively at a low interest rate. However should you not own property then you should definitely consider a personal loan or contacting a microlender to help you with your immediate needs.