Signs You Need to Get a Personal Loan

Personal loans are more expensive than secured loans, but this is because you do not need to put any collateral up in order to get a personal loan. When a personal loan is used sensibly it can completely change things in times of need. A personal loan can ease sudden expenditures like high medical bills, moving costs, credit card balances that have got out of hand or expenditures that are more than what you budgeted for.

personal loan

Financial burdens can be eased through the use of a personal loan when they are borrowed and repaid on time. Take a look at these common uses for a personal loan and see if getting a personal loan is right for you.

Medical and Dental Bills

Health insurance is great to have, but it may not cover everything, which means that some medical bills can start to eat your savings. There are some insurance covers that won’t cover elective surgeries or aftercare, which means you will be stuck with these bills. You are able to use a personal to cover any missed payments for medical or dental bills that you currently have before these defaults start to affect your credit.

Consolidating Your Existing Debt

Credit card debt, small loans and other types of debt can quickly get out of hand. You will need to manage the monthly payments on each debt plus pay different interest rates and you may not be able to keep up with all these payments. A personal loan can be used to consolidate all these debts under one fixed rate loan with a closed end term. This will mean that you will only need to manage a single debt repayment each month with a single interest rate.

Lose High Interest Credit Cards

If you are struggling with a high interest credit card debt then a personal; loan could be your solution. An unsecured loan is more expensive than a home equity loan, but the interest rates will be lower than what you are paying on your credit card. You can use a personal loan to settle the amounts on your high interest credit cards and get rid of these.

Paying for Home Improvements

You can use a home equity loan for remodelling your home or making improvements as this will cost less than a personal loan, but if you don’t have a lot of home equity and you need to make repairs or upgrades then you can get a personal loan. There are some home repairs that can’t wait and if you are remodelling your home or making improvements then you should make ones that offer the greatest return on investment in terms of home value.

Wait…There are more common uses for a personal loan below…

Improving Your Credit Score

If you have consolidated your debts with a personal loan, then you can improve your credit score as long as you have paid the personal loan on time for at least 6 months. If your personal loan pays off existing debt, then ensure that the information about your account has been correctly reported to the credit bureaus. This means making sure that your old debts have been marked as paid.

Paying for a Wedding

Weddings are expensive even if you have a small wedding. Wedding costs include the dress, food, venue, flowers, music and more. You are able to pay for your wedding or just part of it with a personal loan, which will avoid you draining your bank account and your savings account.

Holiday Time

Whether it’s a honeymoon or a trip of a lifetime it can be expensive, but a personal loan is often used to pay for these types of trips. Travel is expensive, but if it’s a once in a lifetime trip and you will be able to pay the loan back then it could be your key to travel to your dream destination.

get a personal loan

Financing a Car

A popular way to finance a vehicle like an RV, car or bike is to use a secured loan, but if you do not have a credit history or don’t have any equity then you can use a personal loan to fund your vehicle. This could be your first loan and can be a great way to start building a credit history.

Paying for a Move

If you are facing a sudden career transfer or a new job in a different city then your savings can take a hit. You can fund an unexpected move like packing boxes, moving vans, a down payment on a new home and other such things with a personal loan.

Pay for a Funeral

This is something that many of us do not like to think about, but funerals can be expensive. A funeral includes a casket, burial or cremation costs, funeral home fees, food, flowers, transport and more. There are many people that buy insurance in order to cover these costs, but a personal loan can help to cover any shortfalls or if you do not have cover to pay for the full funeral costs.

Personal loans can completely change your situation and allow you to pay for things that you were struggling or unable to pay for before. You should keep in mind that a personal loan is only beneficial when you are able to repay the monthly amount on time.

How to Get a Personal Loan for Christmas

The holidays are in full swing and Christmas is just around the corner and you might be stressing about if you can afford it. There are gifts to buy, decorations, Christmas parties and the kids are on their festive break.

It is not the best idea to get a personal loan to cover these expenses, but if it’s your only option then you will need to know how to get the best terms for your loan.

Getting the Best Personal Loan for Christmas

When you are looking for a personal loan for anything, including Christmas then you need to make sure that you get the lowest interest rate possible. Your credit score will influence this, so you will need to know your score.

If you have a low credit score then you will pay higher interest rates. You can use a reputable credit reporting company to find out where you stand with your credit score.

Apart from the interest rate, you also need to take into account fees that the loan provider will charge. There is usually an origination fee and it’s generally a percentage of the total amount that you are borrowing. This fee could be deducted from your loan proceeds.

If your credit score is not that great, then you are able to find loans for people with bad credit. These loans are short term loans and may carry a high interest rate. You are able to compare offers though and choose the one that is the best option for you.

If you want to boost your credit score then you need to make sure that you pay every bill on time, pay off your debt and ensure that there are no errors on your credit report.

Also, make sure you don’t apply for any more credit around this time as every time you apply for credit, your credit score actually drops a few points.

You might be wondering how you can limit your debt over Christmas…

Limit Your Debt During the Holidays

There are a few ways in which you can limit your debt over the holiday season.

What are the Options

If you are going into debt over the holiday season then you should do this without paying a lot of interest. You can ask a family member for a small loan, for instance, just make sure you do not ruin your relationship with that person because of money, but this can help you to save money.

Another alternative if you have good credit is to apply for a credit card that has 0% APR promotion. You will be given a certain amount of time with these credit cards where you will not need to pay any interest on your purchases.

When you are shopping for a short-term cash loan, make sure you compare offers from lenders so that you are able to get the best deal and limit your debt.

Have a Budget

You will need to establish a budget for how you will use the loan funds. You should compile a list of everything that you expect to spend.

This will help you in not borrowing more than you need and it will make sure that you only spend what you have budgeted for.

Also, just because you have borrowed a certain amount, it doesn’t mean that you have to spend it all. If you find something that is under your budgeted amount then you don’t have to spend the rest.

Give the Gift of Time

You don’t have to spend money on a gift, instead, you can offer your time. You can babysit, for instance, for a family member or you can help elderly relatives with something they need doing. You will need to put some thought into what you can offer, but as you are not spending money, you will not need to worry about debt.

Plan in Advance

This may not help this year, but you can already start planning for next year. You should evaluate how much you spend at Christmas and save this amount throughout the year.

Another option to plan for next year is to actually shop for Christmas gifts throughout the year. You can create a gift list for next year and keep a copy in your purse or wallet, then when you see the right gift at a good price, you can get it and cross it off and not buy anything else for that person.

Borrowing money for Christmas is not the ideal situation, but sometimes it’s necessary. You just need to make sure that the loan is affordable and you will be able to repay it.

You should definitely use a loan comparison site so that you can find the best deal and also limit the amount that you have to borrow. Also, start getting ready for next year by saving each month or by buying gifts throughout the year.

A short-term cash loan can help this festive season, but avoid borrowing more than you can afford and make sure you can pay the loan back and on time.

How to Budget for the Festive Season

The festive season is here and it’s not called the silly season for nothing. It’s the time of year where we seem to throw our budgets out the window and spend, spend and spend, but just because it is the season of giving, it doesn’t mean you have to blow your budget.

There is a lot of pressure to spend money over the season on amazing gifts, but you can still treat your friends and family without draining your bank account and you can stay in budget.

How to Budget for the Festive Season

Setting the Budget

The first thing that you need to do is to create a budget. You will need to figure out what you are able to afford and work out who you need to get gifts for, so you can spread the amount you can spend.

The perfect situation would be to save up throughout the year, but it’s never too late to figure something out. You could consider taking a cash loan over the festive season, but you need to be sure that you are able to pay the loan back.

Another thing you could do is to look at your spending patterns and see what you can save for gifts. You may see that you can temporarily cut down on things so that you can increase the amount of spending on gifts.

Set a solid number for yourself, so you have a hard limit and work within this limit to make the holiday season slightly easier. You do not want to end up in debt just because of Christmas.

Limit Your Spending

The easiest way to make sure you stay within your budget is to limit how much you spend on gifts.

These limits can be set in a number of ways, for instance, you can have a limit per family, per couple or per individual.

You should see what you can afford and go from there.

Making a List

Once you have your limits set for everyone you need to buy for, it helps to create a list of gifts and the amount that they cost, so you know you are sticking to your limits.

You need to be specific about what they want or what you think they would like and what it will cost. If you then see something awesome that uses the whole budget for your partner let’s say, then you know that is all they will be getting.

It will also help to keep you organised, which comes in handy when you are out shopping and are overwhelmed by sales or when you receive an email informing you of a special deal.

The easiest way to stick to your budget and spending limits is to get a gift card or to give the exact amount of cash, but these can be seen as impersonal.

There are still great tips to know…so keep reading…

The 4 Gift Rules

The 4 gift rule is popular with parents for kids, but you can use it for anyone.

The key is to get something:

  • They want
  • They need
  • They can wear
  • They can read

That is, it. You can use this rule with your spending limits and it also puts a limit on how many gifts you can buy, which will help you to focus when shopping.

The rule is practical and stops you from buying gifts just for the sake of buying them. You don’t have to spend a ton of money to have a jolly Christmas, so forget the pressures and just keep it simple.

Focusing on these four areas will create less stress year after year.

What About a Gift Exchange?

This is a great idea for those that have huge families, because your spending can easily get out of hand if you have lots of people to buy for. So, instead of spending a fortune on individual gifts, why not suggest a gift exchange.

A gift exchange is where each person from the family just brings one gift valued at a certain amount and you do a type of lucky dip.

This can work with friends, at work, your immediate family and of course your extended family.

Try a Giftless Holiday Experience

Many people get caught up with the buying and spending over the holidays and they forget actually what the holidays are all about, which is to spend time with loved ones.

A giftless holiday experience is not a popular option, but there are some that celebrate the holidays by spending time rather than money.

You can still get into the holiday spirit by perhaps volunteering or donating to a charity during the holidays.

The idea here is to create new holiday traditions that aren’t focused on presents. You and your family can just get together and enjoy a meal, play games or watch a movie. There is nothing wrong with doing something different for Christmas.

Go Down the DIY Road

If your family is not keen on the giftless or fewer gifts option, then you can save money by making presents yourself. Presents that you have made are more thoughtful and you don’t have to spend a lot of money to make a nice present.

You can create cards, decorations, write a poem, retell a favourite story, knit blankets, scarves or gloves, make your own soap, bake treats and create goodie baskets and so much more.

If you are thinking about getting crafty and making presents then it is a good idea to stick to one idea so you can buy the materials in bulk and save money.

Budgets over the holiday season may seem restrictive, but it is a tool to help you to not blow all of your money and maybe end up in debt. You don’t want to stress about your credit card bill over this time. If you take a cash loan, don’t take more than you can afford, so you know you can pay it back.

Your loved ones will understand that you don’t want to spend more than you have and that it’s not what Christmas is about. Focus on spending time with your loved ones and appreciate the moments with them and they will be grateful and appreciate your thoughts behind your actions.


Surprising Benefits of Instant Payday Loans

Bills don’t wait for you and financial emergencies always seem to arise when you are the least prepared for them whether it is a hospital bill or a car repair.

However, if you are in a financial crux then you do have options like instant payday loans, which aim to help people. These loans are smaller loans with short terms that will help you through a rough patch until your next paycheck.

Here is a look at some surprising benefits of instant payday loans.

Quick Cash

An instant payday loan is instant, which means you will be able to get the money that you need and fast.

A payday loan is easy to apply for and you will receive the money that you need within just a few hours. This is highly useful for someone that needs to pay an unexpected bill immediately so that they are able to avoid any late fees.

You can easily end up in more and more debt by missing payments and getting a payday loan to cover these will supply you with more time to get your finances back on track.

There are No Credit Checks

The majority of payday loan lenders will not even look at your credit report after you have applied. This can be a huge benefit to those that have had a knock on their credit report and are now sitting with bad credit.

Usually, if you have bad credit traditional lenders will reject your application, but payday loan lenders will give you the approval that you need and quickly and you can get the money.

Your Credit Rating Is Protected

Generally, payday loans are not reported to credit reporting companies, so your credit score will not be affected.

This then makes payday loans a good way to work on your immediate debt without it creating penalties on your credit rating.

However, you will need to make sure that you are able to pay off the instant payday loan, because if you can’t then the lender does have the right to report you to a debt collector and this will appear on your credit report.

Wait…There are more benefits…

You Don’t Have Any Credit

There are many young people that have not yet built up enough credit, which means they will struggle to get a loan from a bank.

Making monthly payments on a car or a mortgage, shows banks that you are able to repay debt on time and without this, they may not even look at your application.

However, you may face the same financial situations as an adult, but without any credit, you are not able to get a traditional loan, but you are able to get an instant payday loan, which will then help you in times of emergency.

A payday loan does not require you to show proof of credit in order to be approved. You will just need to be 18 years old, have a checking account and a steady income.

Interest Rates are Capped

There is another side of instant payday loans though. In return for getting the cash that you need quickly, the interest rates are higher than longer term loans.

The interest rate on a payday loan can be anything between 15 and 30 percent.

However, many countries have capped the amount of interest that can be charged on a payday loan, so have a look and see if there are caps on the interest rate for the loan you are interested in.

Getting Higher Amounts

You will need to be aware of the amount that you are able to borrow through an instant payday loan. A payday loan is a short-term loan, which means the amounts that you can borrow are quite small.

Have a look at the maximum that you are able to borrow and comfortably afford and determine if it is enough to cover all of your expenses that you need to pay.

If not, then you will need to look at building equity so you can borrow more.

You can do this by proving that you are worth the risk. If you have borrowed from the lender before and paid the loan amount and the interest back on time then they may allow you to borrow more the second time and slowly raise the amount of money they will lend you.

Also, the amount that you are able to borrow from a payday lender will depend on your monthly salary as they will not lend you more than you can afford.

They Are Just Easy

Payday loans are super convenient and you are able to apply and be approved online. You will not need to go anywhere or have wads of paperwork to apply for a payday loan as you can do everything from the comfort of your home with a computer.

Also, instant payday loans give you cash, which means you are able to use the loan on anything you like. Traditional loans usually have a specific purpose attached like a car loan can only be used for a car.

With cash that is paid directly into your bank account, you have the freedom to spend it on what you need.

Instant payday loans are beneficial to those that need them for a financial situation that may arise and as long as you pay the loan and the interest back on time, you will have no issues using an instant payday loan.


Basic Requirements for a Payday Loan

Payday loans do have many advantages and one of these is that the requirements for potential borrowers are pretty basic. There is not a huge amount of paperwork to go through like with traditional loans where the criteria is pretty strict. It is actually quite easy to get approval for a payday loan compared to other loan types.

All payday loan lenders will have their own criteria, but the basic requirements are:

  • You need to be a citizen of South Africa
  • You will need to be over the age of 18 and provide a proof of identity
  • You will need to provide contact details like a telephone number, address and a proof of address like a utility bill
  • You will need to provide a proof of income and you may need to earn a certain minimum
  • You will need to have a valid banking account.

No matter what your credit score is you are able to apply for a payday loan. You will not need to provide any collateral in order to take the loan either. It is then pretty easy to apply and qualify for a payday loan. You should check your lender’s criteria before you apply and make sure that you meet their requirements.

Improve Your Credit and Qualify for a Personal Loan

One way that you are able to meet your financial needs or to consolidate high interest debt is to get a personal loan. This is because a personal loan will usually have a lower interest rate compared to credit cards and offer structured repayments.

However, if you want to qualify for a personal loan then you will need to have the acceptable minimum credit. The better your credit score is then the more advantageous the terms of your personal loan will be.

If you need to improve your credit before you can qualify for a personal loan then here are some ways you can do this.

Know Your Credit Score First

The first thing that you need to know before you start improving your credit is to know how your credit score is calculated. Your credit score is a 3 digit number that ranges and as a general rule the higher your credit score the better it is. Anything below 600 or so can be considered a risk.

The score that you have is based on your payment history, how old your accounts are, your credit usage, the types of credit you have and how many new accounts you apply for. These all carry a percentage and contribute a certain amount to your score.

Once, you know how your credit score is calculated, you are able to take steps to make sure that you don’t hurt your credit score.

If you wish to improve your credit then you will need to know where the problem is by getting your credit report.

You might be wondering how you can get your credit score higher…

Time to Improve Your Credit Score

Once you have a copy of your credit report, you should first check it for any inaccuracies. Go through your report and see if there are any mistakes, like someone else’s credit under your name. You should get these mistakes fixed as soon as possible by reporting them to the credit bureaus.

Other inaccuracies may include untrue information like a debt is reported as default when it is actually now brought as current and paid. You should contact the creditor directly and ask them to fix the issue. You should also notify the credit bureau of this mistake.

A good percentage of your score is based on the amount of available credit you use. Lenders do not want to see that you have maxed out credit cards or high credit usage as this shows that you are actually living beyond your means and that you might find it difficult to keep up with payments in the future. Your credit usage should be around 30% of the credit that is available to you and if it is more, you should focus on paying these debts.

You should contact your creditors and ask them to remove black marks. If you have a good relationship with your creditor that is reporting a late payment, you can call them and ask them if they will be willing to remove the record of the late payment. There are some creditors that will do this, especially if this is your first late payment.

If you are trying to improve your credit then you should refrain from opening new cards. If you open too many cards then you will have too many inquiries on your credit report. Lenders may see this as you are about to go on a spending spree. You should not take any new loans or open new cards if you plan on applying for a new loan in the close future.

Lenders like to see that you have different types of credit as it can show that you have been responsible for paying various types of loans off like a credit card, mortgage debts and car loans.

If you have a friend or a family member that has good credit then you should see if they are willing to list you as an authorized signer on one of their cards. This will mean that you do not have to apply and they don’t even have to give you the card. Once you are an authorized signer, the credit history of that account will be reflected on your report and this could raise your credit score.

If you are applying for a personal loan with your bank then they might be willing to use traditional underwriting standards. This means that your entire application is looked at and not just your credit score when they decide whether or not to give you a loan. If they are willing to do this, then they may also take into account evidence of why you have bad credit like if you lost your job, for instance, and give you a loan anyway even if your credit is not the best. This is also based on that your past mistakes are unlikely to repeat on the new loan.

Once you have improved your credit, you will find it easier to qualify for a personal loan that you may need. Focus your efforts on improving your credit. You are able to get a loan with bad credit, but you will often face very high interest rates and the only way to avoid this is by creating a better credit score.


Reasons Why SA’s Economy May Take Another Hit

The economy in South Africa has been bleak in 2017 with two credit downgrades to junk status and a recession. Moody believes that the economy could get worse for a few reasons.

A Divide in the ANC

It is thought that between 30 and 40 ANC MPs voted against Zuma in the recent vote of no confidence. This shows that there are rising political tensions within the ruling party leading up to the elections in December. With political instability, investments will remain low.

Unemployment Rate

The economy is being undermined by the unemployment rate in the country, which os over a quarter of South Africans.

Changes to the Mining Charter

New investments in this sector will be delayed due to the continued uncertainty in regards to the legal aspects and regulations. The value of the rand took a hit when Minister Zwane’s made his proposal that 30% of companies should have black ownership.

Failing State Owned Enterprises

SAA is a prime example of this as the airline company has been taking constant bailouts and loans. SAA received R2.3 billion from the National Treasury in early July so that it was able to pay back a loan to Standard Chartered Bank.



What to Look for in a Loan

The right personal loan will be the one that suits your needs, your affordability and your assets, but with so many products on the market, it can be difficult to choose a personal loan. However, here are some things that you should look for in a personal loan.

The Interest Rates

The interest rate that is charged on your personal loan will make a huge difference to the amount that you owe. The interest rate that you are charged will depend on if you take a secured or unsecured personal loan.

An unsecured personal loan is where the loan is not secured against an asset, which makes it a higher risk loan, which means that it will have a higher interest rate.

A secured loan has an asset attached that acts as security, which means that if you fail on your payments the lender is able to seize your asset to pay for the loan. A secured loan generally has lower interest rates.

Repayment Flexibility

It is useful for your personal loan to allow extra lump sum or regular payments in addition to the normal monthly payments that you will make. If your personal loan allows this, it gives you the freedom to pay off more when you can and repay the loan ahead of time.

However, make sure that your personal loan doesn’t charge an early repayment fee. This fee does vary depending on the lender, so try to find a loan with no fee or a small fee.

Loan Fees and Charges

Your overall loan cost will be greatly affected by the fees and charges that are applied. The interest that is charged will need to be balanced against the other fees so you can get the best deal on your loan.

Customer Service

As with anything, a lending institution needs to have a good customer service behind it. The ideal service is one where you can access your loan conveniently with online banking, make extra payments and contact the customer service through a helpline.

Overall, the customer service should be able to answer all account queries that you may have efficiently and effectively.

A Comfortable Short-Term Loan

A personal loan with a longer term will mean that your monthly repayments will be less, but keep in mind that the longer your loan term is then the more expensive it will be because you will be paying more interest.

You should consider a short-term loan, especially if you only want to borrow a small amount of money. With a short-term loan, you will be able to pay your debt off sooner and incur less interest, but your monthly repayments will be higher.

You will then need to compare the loans and decide what you are able to comfortably afford.

Wait…Don’t just apply for a loan…

What You Need to Know Before Applying for a Loan

If you are shopping around for a personal loan, then there are some things that you need to know before you apply.

Borrowing Less with an Unsecured Loan

There are unsecured and secured personal loans. An unsecured loan is considered to be higher risk, which means that you can only borrow a small amount. You can usually borrow more with a secured loan.

A Secured Loan Is Against an Asset

A secured loan is where the debt is held against an asset like your home. This then means your home will be at risk and could be repossessed if you fail on your monthly repayments.

The size of the loan that you can take will depend on the equity that you have in your home, but you should never borrow more than you can afford.

Have the Best Credit Score for the Best Rates

The fact is that the better your credit rating is the better the interest rate you receive will be. If you have a bad credit rating, then it is a good idea to first improve this before applying for a loan, so you can get a better rate.

The Longer the Loan the More You Pay

The amount that you need to pay each month will depend on the amount that you want to borrow and the period that you have to repay the loan.

If you choose a longer term than your monthly repayment will be lower, but in the long run, the loan will be more expensive because of the interest.

The term of your loan should be based on the maximum that you are able to afford each month.

Consider a Credit Card for Short Term Lending

If you only need to borrow money for a short period of time like less than a year then it might be a good idea to use a 0% interest card. These cards will give you a certain amount of time where 0% interest is charged so you can pay back the money in this time. At the end of the 0% period, interest will be charged.

It Might Cost You to Pay Back the Loan Early

There are many lenders that charge an early settlement fee. This is a penalty that you need to pay because you repay the loan earlier and is charged because the lender is missing out on a chunk of interest.

Hidden Fees

You should always read the terms and conditions carefully and look for any hidden fees. You will need to add these fees to the overall cost of your loan.

The Rates Might Be Variable

The rates that you pay on an unsecured loan are usually fixed but many secured loans may have variable rates, which means that your repayments could rise. Make sure you know what you are signing up for so you don’t face any surprises further down the road.

There are a number of personal loan options out there and you will need to shop around in order to find the one that is best suited to your financial needs and capabilities. An easy way to compare loans, is to use a comparison website that sources the best loans for you.

Top Loan Offers Right Now

Are you feeling the mid-year crunch? Do you need some help? Take a look at these top loan offers right now.

Loan SA

Loan SA offer a fast and convenient way for you to apply for a loan. The process just takes 3 minutes. Loan SA are also able to help you if you have a poor credit rating. You can apply for a loan online and not have to deal with a mountain of paperwork.

Loan SA details:

  • Borrow up to R150 000
  • Interest – 27%
  • Maximum Loan Period – 60 months

If you would like to find out more click here.

Udu Loans

Udu Loans offers an online self-service loan management portal and utilises the latest technology so that the process is easy and quick. You can choose the amount you want to borrow and your term before you borrow, so you know what your monthly payments will be.

Udu Loans details:

  • Borrow up to R150 000
  • Interest – 28%
  • Maximum Loan Period – 60 months

If you would like to find out more click here.

Cash Loans

Cash Loans offers an easy and quick online application so you can get the money you need. They are also able to help those that have a poor credit rating, defaults or a garnishee order. You will get instant access to your loan.

Cash Loans details:

  • Borrow up to R150 000
  • Get a pre-approved under an hour

If you would like to find out more click here.

Loans Unlimited

Loans Unlimited have been helping Platinum Club Members find the best cash loans with the best interest rates. You will find it easy to understand the loan that is on offer to you as everything is set out.

Loans Unlimited details:

  • Borrow up to R150 000
  • Interest – 26%
  • Maximum Loan Period – 72 months

If you would like to find out more click here.


Apply for a loan online with Mpowa and you can receive your loan the same day. Mpowa allows you to borrow a small amount of money for a short period of time, making your loan easier to manage.

Mpowa details:

  • Borrow up to R2500
  • Interest – 5% per month
  • Maximum Loan Period – 31 days

If you would like to find out more click here.

How to Get a Loan If You Are Blacklisted

It is actually possible to get a loan legally even if you are blacklisted, however, most banks will not actually allow this, but you will be able to find private loan companies that are willing to help.

If you are trying to take a loan and you are blacklisted then you need to know that the terms of the loan will change as your bad credit history will be seen as a risk.

It is not uncommon for people to face financial stress and end up as being blacklisted. If you fall behind on payments your credit history will become bad. If you have a bad credit history and become blacklisted then you will be denied further credit. Also, if you do manage to pay off your debt, this will not mean your blacklisted status will just go away.

You have obviously become blacklisted because you are in debt and not able to pay, but it can also mean that you end up falling deeper into debt, as you will not be able to get a personal loan in order to cover what you owe.

Most forms of credit will become unavailable to people that have bad credit, but there are other places you can get a loan from. You are able to take one of these loans and cover all of your debts and only have the one loan to pay back.

You will need to do your research though if you are looking for a blacklisted loan. You will need to find a reputable and accredited company and compare a few offers so you can find the best one for you. Keep in mind that because of your bad credit, you will pay a higher interest rate.

So…You might be wondering how this works…

How Do Loans for Blacklisted People Work?

There are a number of loan lenders that are willing to help those that are trying to get out of debt. This is because these companies understand that you may have faced a difficult financial time and are still struggling.

If you are in need of a loan when you are blacklisted then you shouldn’t approach a normal bank as you will not be able to get a loan from them. It is very difficult to get approved by a bank because they have a strict criterion, that you probably won’t meet because of your bad credit.

It is a good idea to contact a few lending institutions so that you can look at all your options. Also, loan lenders will offer different rates and will have a different qualifying criterion, so you should compare companies, so you can get the best loan that suits your needs.

However, if your loan application has been denied for whatever reason or you don’t want to have to deal with high interest rates, then here are some other options that you could consider.

Other Options Apart from a Loan

Get a Home Equity Line of Credit

If you own your home and have built enough equity then you might be able to get a low interest line of credit on your home. The money that you receive can be used however you like.

However, the problem with doing this is that you will put your property at risk if you are not able to pay the loan back.

If you have a monthly income that enables you to pay down your line of credit, then this could be an option no matter what credit score you have.

Get a Peer to Peer Loan

Peer to peer loans is a great alternative to the usual loans. You are able to find peer to peer loans online and involves you borrowing money directly from an individual and not a financial institution.

Peer to peer loans have become popular, because they are a streamlined way of borrowing money and the interest rates are relatively low and investors are making more on the interest than they would if they left their money in the bank.

Borrowers will post their loan listings on the P2P site, which includes the amount that they wish to borrow and what the money will be used for. Investors will then go through these listings and choose the ones that they want to be part of.

Lenders will screen applicants and check credit history, but even though your credit score will play a role an individual might be more willing to take the chance and are more sympathetic to your situation than a bank.

Wait…There are a still a few ways more to borrow money…

Borrow Money from Family

If you are still not having any luck then you might need to consider approaching family or friends and ask them for the money.

If you choose to do this then it needs to be handled as loan and correct terms should be drawn up, which is then signed by both parties.

Having a written agreement that stipulates the interest rate, the term of the loan and any collateral that you are using will help to avoid misunderstandings down the road. It should also stipulate what will happen in the event that you are unable to pay the loan back.

However, borrowing money from family or friends can be complicated and it could risk you ruining relationships.

Find a Co-Signer

You could ask a family member or a friend to be your co-signer on a loan. They will need to have good credit score and as long as they trust you to repay the loan, they might be willing to help you. You will have a better chance of getting the loan you need when you have a co-signer, if you are not able to get a loan yourself.

However, if you fail to repay the loan, then the lender will attempt to collect the full amount from your co-signer. Also, the payment history for this loan will show on your credit report and in your co-signers. This could mean that your co-signer will suffer damage because you did not pay the loan.

The only other way that you will be approved for a loan from a bank is to bring up your credit score, however, you do have other options if you are blacklisted or have bad credit.

There are a number of lenders that are willing to help those that are blacklisted and will lend the money that you may need. You should look at these options and find the one with the best interest rate, but keep in mind that this will always be higher than the average that a bank charges. The high interest shows that you are a risk, but you can still get a loan.