Understanding Your Options

Most popular options right now

Term

1 month - 5 years

Loan amount

R500 – R350,000

"REPRESENTATIVE EXAMPLE: ESTIMATED REPAYMENTS OF A LOAN OF R30,000 OVER 36 MONTHS AT A MAXIMUM INTEREST RATE INCLUDING FEES OF 27,5% APR WOULD BE R1,232.82 PER MONTH. REPAYMENT TERMS CAN RANGE FROM 2 - 72 MONTHS. CREDITUM IS AN ONLINE LOAN COMPARISON TOOL AND NOT A LENDER. INTEREST RATES CHARGED BY THE LENDERS FOUND IN OUR SERVICE CAN START AS LOW AS 20% APR, INCLUDING AN INITIATION AND SERVICE FEE DETERMINED BY THE LENDER. THE INTEREST RATE OFFERED DEPENDS ON THE APPLICANTS' CREDIT SCORE AND OTHER FACTORS AT THE LENDER'S DISCRETION."

Apply

Term

1 month - 5 years

Loan amount

R500 – R250,000

"Representative example: Estimated repayments of a loan of r30,000 over 36 months at a maximum interest rate of 29.25% apr would be r1,381 per month including fees. Repayment terms can range from 2 - 72 months. Myloan is an online loan broker and not a lender. Our service is free, and we only work with NCR-licensed lenders in South Africa. Interest rates charged by lenders can start as low as 19.25% apr, including an initiation and service fee determined by the lender. The interest rate offered depends on the applicant's credit score and other factors at the lender's discretion."

Apply

Term

5 days - 37 days

Loan amount

R500 – R8,000

"Loan amount R8,000. Interest rate day: 0,16% new clients, 0,1% subsequent clients. Initial fee: 16,5% of first R 1 000 lent, 10% of loan amount over R 1 000, +VAT.Limited 15% of loan amount, +VAT. Service fee R 69 month. Repayable Amount R 9,106.96."

Apply

Term

-

Loan amount

R 500 – R 4000

Apply

Understanding Bad Credit

Bad credit is characterized by a history of delayed payments or defaults. Such financial blemishes significantly influence one's eligibility for loans as they pose a risk to lenders. Recognizing the importance of maintaining a good credit score could be the turning point in managing your financial future. It's crucial not just when you need a loan, but as a part of managing overall financial health.

Exploring Your Loan Choices

• Secured personal loans require an asset as collateral. This could be your car or your house. It's a safer option for lenders, resulting in potentially lower interest rates for you. However, if you fail to repay, you might lose that asset.
• Payday loans are short-term, high-interest loans intended for emergency use. Be cautious: these can lead to debt cycles if not managed properly.
• Guarantor loans require someone else, usually a family member or friend, to co-sign and agree to cover your payments if you cannot. It's a big responsibility, so approach with care and respect their trust.

Choosing Responsibly

When seeking loans, it's paramount to analyse all available options carefully. 'Rushing into financial commitments can lead to further debt,' one financial advisor comments. 'Always consider the long-term impacts of your borrowing decisions.

When others say no

Being turned down by traditional banks can be a tough pill to swallow. But, fret not! There's a silver lining. Places like credit unions and peer-to-peer lending platforms might just be your ticket to securing that much-needed loan. They tend to look past the usual credit scores and delve deeper into your actual ability to pay back, offering more flexible terms especially if you've got a not-so-great credit history.

Always remember, though, to tread carefully. While these alternatives may offer easier approvals, it's crucial to review the terms thoroughly. High interests and other less favourable conditions can sneak up on you. So, think twice, compare your options, and choose wisely to ensure that your financial choices don't lead you into deeper waters.

Improve your chances

• Maintain accurate financial records
• Regularly check your credit report for errors
• Reduce existing debt levels

Enhancing one's credit score is possible through disciplined financial practices and could significantly improve loan approval odds.

Cost of borrowing

Understand the costs before you leap into a bad credit personal loan. They're not just about the face value but also about the long-term impacts they can have on your finances. With interest rates as high as 25% and additional fees amounting to R400, it's crucial to deliberate carefully. Opting for a loan with high costs means more than just increased monthly payments; it affects your financial stability and credit health. Always consider less expensive alternatives or ways to improve your credit before committing to such hefty expenses.

Online lenders vs traditional banks

When it comes to securing loans for bad credit, the decision between online lenders and traditional banks can be likened to choosing between ordering fast food or preparing a meal at home. Online lenders provide the convenience of swift application and approval processes, similar to grabbing a quick burger. Conversely, traditional banks resemble making a home-prepared meal - they require more time but could be more economical with potentially lower interest rates and comprehensive screening.

Credit and your future

Managing a loan responsibly can lead to better future credit options. Timely repayments and full adherence to terms help build a positive credit history, increasing accessibility to preferable loan conditions.

Error-proof your application

• Ensure all personal details are correct
• Provide all required documentation
• Double-check the accuracy of your financial information

An error-free application increases your chances of loan approval and avoids delays. Remember, a sharp eye now could save you from a headache later. It's all in the details!

Real Stories

One borrower managed to consolidate substantial debt through a well-negotiated secured loan, despite having a poor credit score. Stories such as these highlight the potential positive outcomes of persistent and informed borrowing strategies.

Manager's Nightmare: High Interest

The high interest rates associated with loans for those with bad credit present a considerable challenge. These rates frequently cause the total repayment amount to skyrocket, pulling borrowers into a relentless cycle of debt. This situation can feel like a trap, making it difficult to escape and regain financial health.

The fine print matters

Understanding the terms and conditions of your loan agreement is crucial. Significant details hidden in the fine print can have long-lasting impacts on your financial health. It's like playing a game where the rules are written in tiny letters—missing them can cost you more than you bargained for. Always take your time to read through every line before you sign. If something isn't clear, don't hesitate to ask for clarification or seek advice. Remember, it's not just about getting the money; it's about managing the aftermath without stress. Being aware saves more than just money; it saves peace of mind.

Thinking outside the bank

When the usual banking routes don't quite match your situation, especially if you're dealing with bad credit, turning your gaze towards peer-to-peer networks might be a shrewd move. These platforms connect borrowers directly with lenders, sidestepping traditional banking regulations and often offering more adaptable repayment terms that could better align with your personal financial scenario.

The big no-no

Engaging with lenders who do not openly disclose fee structures or terms should be strictly avoided. Transparency is key in financial dealings, especially when securing loans. If a lender hides their fees or terms, it might lead to unexpected costs down the line. Always ensure that you understand every detail before committing to a loan agreement.