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A Simple Guide to Navigate Loan Application While Being Blacklisted

Do you want to apply for a loan online in South Africa? Did you just find out that you are blacklisted and can’t apply for a loan easily? If so, you have come to the right place.

When you live in South Africa and are blacklisted, it can get extremely difficult to apply for a loan to a bank or any financial institution. However, it is not impossible!

You can apply for loan online to independent lenders who provide loans to blacklisted people. But do you know exactly what it means to be blacklisted? Or how you can improve your credit score? If not, keep reading this article to find out more.

Blacklisted! What does it mean?

If you are blacklisted, it simply means that financial institutions consider you as a risk and liability. This happens if you consistently fail to repay your loans and debts.

However, know this, that there is no such ‘blacklist’. It is a term used to identify people who are not reliable for giving loans due to their history of defaulting on loan repayment.

How to find if you are blacklisted?

It is quite easy to find out that if you are blacklisted or not. In South Africa, you are entitled to get a complete credit score report and history from a local credit bureau.

There are some independent companies too that can give you complete detail of your accounts, debts, and credit score. But always remember, no company can tell you exactly you are ‘blacklisted’ because as mentioned above such a list doesn’t exist.

 Bad Credit Score: What is it?

To explain in brief, a credit score is calculated based on different factors and lies between 300-850. A credit score is called good when it lies towards the higher end of the range. Whereas a bad credit score lies at the lower end of the range. Following are the factors and information used to calculate a credit score.

  • Payment history
  • Money you owe
  • Your account’s age
  • Bank account activity
  • Previous credit checks carried on you

A credit score is an indication of how your financial behaviour is: good or bad? However, if you want to improve your credit score, keep reading this article. We have got some tips for you!

Blacklisted: How does it affect you?

The major impact on your life due to being blacklisted is that you won’t be able to get loan online easily. But you don’t have to worry too much or feel ashamed about being blacklisted. Numerous professionals have been blacklisted before due to poor credit scores.

Will I be blacklisted forever?

Yes and No! If you don’t take any steps to improve your credit score, you might stay blacklisted forever. But if you are actively making effort to pay back your debt and show proof of debt consolidation, you will not be blacklisted forever.

Tips to fix bad credit score

So, you know what it means to be blacklisted and how it can prevent you from getting a loan. But let’s now talk about how you can improve your bad credit score to not stay blacklisted forever.

  • Debt Settlement

As mentioned above, the best way to improve your credit score is to settle all your debts. Now, remember this, that debt settlement will not drastically improve your credit score. But when you apply for any personal loan, having better loan management on your credit record can play in your favour.

Most banks tend to study your debt management record as compared to direct credit score. This gives them an idea about how you tackle your debt.

  • Fraudulent Activity Check

So, you applied for a personal loan and the bank rejected your application citing a bad credit score as the reason. Now, if you know that you have done everything in your capability to maintain a good credit score, make sure to check for fraudulent activity.

You can do so by getting in touch with the local credit bureau and complain. If this doesn’t work in the next 20 days, contact Credit Ombud.

  • Timely Payment of Bills

The best way to ensure that you never fall into debt and have a good credit score is to ensure that you pay all your bills on time. It is just that simple! Manage your budget and finances so that you don’t default on your debt repayment.

  • Pay Credit Card Balance

Credit card debt can have a major impact on your credit score. If you make timely payments of your credit card balance, your credit score will surely improve. So, if you haven’t added a credit card repayment to your plan, do so now. If you are consistent with your credit card balance repayment, the bank will be able to assess your overall repayment history and strategy.

These a few of the ways that can help you improve your overall credit score. This can certainly bring you back on track and prevent you from staying blacklisted for long.

If I am blacklisted, what type of loan I can get?

  • Secured Loans

When you are blacklisted, it is easy for you to a secured loan. Why? Because the lender will ask for a property as collateral before approving your loan amount. In case, you default to repay the loan, the lender can keep the leveraged property.

  • Payday Loans

You can also apply for a payday loan when you are blacklisted. But the drawback is that payday loans are unsecured loans that come with high-interest rates. It can get increasingly difficult for you to repay the loan.

If you are blacklisted and want to apply for a loan online, you can visit our website Snappy Loan.

We have a complete list of the latest loan offers provided by lenders to people who are blacklisted. You can search, review, and compare different offers on our website.

By clicking on ‘Snap It’ you will be taken to the website of the lender. Fill the application form and fulfil all other requirements to get the loan.

To know more, get in touch with our team!

Get Loan Online

A Simple Guide for Online Loan Application in South Africa

Most people these days use the Internet to search, apply, and purchase different products and services. And the same goes for bank loan applications. You can apply for loan online right from the comfort of your home.

And it is not just about comfort when it comes to filling online loan applications but you can also get great loan offers at your fingertips. But do you know what it takes to make a successful online application for a loan? Don’t worry! This blog post will give you all the details about the online loan application process. 

What types of loans are available online?

In South Africa, you can find online loan offers for the following types of loans:

  • Short-Term Loans: This type of loan can be easily applied online. You can borrow only small amounts when applying for short-term loans. These loans have higher interest rates, and thus, need to be paid off quickly. Payday loan are a great example of a short-term loan. 
  • Secured and Unsecured Loans: Secured loans come with low-interest rates and require you to provide a property as collateral. On the other hand, unsecured loans have higher interest rates and don’t need collateral which makes them risky. 
  • Debt Consolidation Loan: This loan assists you in paying all your existing debt. This way you are left with just a single loan account that is easy to manage and payback. 
  • Study Loans: These loans are meant to assist your education. Study loans have different structures and lower interest rates as compared to personal loans. 
  • Motorbike Loan: You can apply for a motorbike loan if you want to buy a motorbike in South Africa.
  • Car Loan: If you intend but a car and need financial support, car loans are the best way. 

Checklist to Apply for loan online

Have you finally decided to apply for a loan online? How do you know which loan offer is best for your needs? Below is a checklist that will help you efficiently comparing different loan offers and get loan online

  • Loan Term: You can choose a loan term between 6 months and 72 months. Make sure to choose a loan term that gives you a comfortable period to payback. 
  • Minimum and Maximum Loan Amount: Make sure to choose a lender that can give you the flexibility to choose your loan amount. Some lenders in South Africa limit the loan amount range. 
  • Interest Rates: You might already know that low-interest rates are the best choice. But what you don’t know is that you have to choose between variable and fixed interest rates. Fixed rates don’t change over the period but variable interest rates change over time. Both have pros and cons but the choice depends on your requirements.
  • Terms of Repayment: Usually, loan repayment occurs every month. But some lenders give you the flexibility to pay on weekly basis. You can opt for these repayment terms if you want to pay your loan quickly. 
  • Additional Benefits and Fees: To stay ahead of the competition, some lenders give you additional benefits for no extra charges such as excellent customer service. Take advantage of these benefits. But also be wary of any additional fees. The loan might look cheaper initially but might have hidden costs. 

The process to apply for a loan online

Let’s take a look at the general requirement and process of applying for a loan online in South Africa.

Loan application requirements

  • Age 18 years and above
  • Valid South African ID
  • Payslips and bank account statements as proof of income. It shouldn’t be older than 3 months
  • Minimum monthly income proof. Some lenders want you to have a minimum monthly income to qualify for a loan. 
  • Good credit score

The online loan application process

  • Once you have searched, reviewed, and compared different loan offers on our website Snappy Loan, click on “Snap It!” You will be taken to the lender website. You can start applying for the loan online. 
  • Chances are that the lender will ask you to fill an online application form for details such as an address, name, email, and more. 
  • Once you have filled the online application form, click submit and wait for the approval. 
  • After submitting your loan application, the lender will approve it and send you a loan offer. You have to accept the loan offer for you to receive the loan amount in your account. 

Traditional loan application Vs. Online loan application

So, when you compare traditional loan application with the online loan application process, applying for a loan online has got several benefits:

  • Easy and quick applications since you don’t have to visit the lender. Instead, you can apply for a loan online in the comfort of your home. 
  • Most online loan offers in South Africa have instant approval. So, you might have to just for a few hours or business days to get your loan amount in the bank account. 
  • You can easily compare different online loan offers anytime anywhere as the details are always available on the website. 
  • Online loans are also generally a safer option. This is because the information is available online that can be verified easily. You can also check out the National Credit Act that tells you about the lenders that are strictly regulated and other financial services. At Snappy Loan, all the lenders are regulated by the National Credit Act. You can easily find reviews and ratings for different loan lenders online. 

Online loan application has made it easier for people to apply and get a loan from the comfort of their home. But if want extra information or assistance, it would be wise to visit a branch nearby. 

Online personal loan calculator

When you are looking to apply online for a personal loan, don’t forget to use an online loan calculator. This calculator will provide you repayment amount estimate based on the loan amount and loan term. 

When you are comparing loan offers on Snappy Loan, you will find different offers from numerous lenders from South Africa. Choose the loan offer that best suits your needs. Get in touch with our team if you want to know more about loan offers.