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Bad credit can I get a loan

A credit score is one of those things in life that you do not pay attention to, till you need it. Most times you will only find out when you apply for loan or credit that you do not meet the requirements because of your poor credit profile because of history poor payment. Your credit score, plays a major role in any of your credit applications. Having bad credit or been placed under debt review can signal high risk to credit providers.

 

What you need to know about low or bad credit?

 

The term “poor payment” is somewhat vague, so we will try and make it clear for you. Having poor payment does not always mean that your history is bad. It might just be that your credit rating is less than perfect.

 

People with poor payment or low credit scores can be divided, into two explanations.

 

The First:

You have been active in the credit market, but due to unforeseen circumstances like having financial difficulties, you have not kept your accounts up to date or have neglected to pay your credit on time, and even though there are no judgements against you, your score has dropped so low that you can not get credit.

 

The Second:

You have never had credit before. There is no information to base your credit rating on, leaving you with no credit options.

Having no credit or poor payment is a major stumbling block to getting a loan because you regarded as a high-risk customer who might default and leave the credit provider struggling to collect the loan repayment.

 

It is a known fact:

Until your credit score is top-notch, you will not fit the standard lending guidelines that banks have to follow.

However, many clients from South Africa apply for loans every month, even if their credit scores are not good and we recommend, that you rather try and improve your credit standing before applying as this will give you a better chance to qualify.

When you apply for a loan, lenders will check your credit score and affordability and other business rules that they have in place to protect you from taking on credit irresponsibly.