Having bad credit history makes it difficult to obtain any more credit. If you’re blacklisted, your dreams of attaining big item purchases such as a car or a house may have to be deferred. Being blacklisted is as a result of making poor financial decisions. This isn’t always the case though, as some individuals face challenging circumstances which render them unable to pay their debts. This leads to a bad credit rating.
When this happens, banks and other lending institutions will see you as a high risk and you will be flagged as a financial risk. Being blacklisted is a stumbling block, but the road doesn’t end there. Purchasing a vehicle may become possible through approaching certain lending institutions. These loans may come with higher interest rates than those given to non-blacklisted individuals. There are options of refinancing at a later stage.
Obtaining a loan as a blacklisted individual
An important step to take can be making an effort to clear your credit record. Your name may be removed from some blacklists which may improve your prospects considerably. The interest you are charged may decrease as a result.
There are numerous companies which offer services in clearing bad records with credit bureaus. It’s always advisable to seek expert help from legal practitioners and debt counsellors. These practitioners can help you come up with strategies for settling your debts. With enough help and a diligent approach you can eventually get your name removed from blacklists.
Getting a vehicle even if you are blacklisted is now a possibility, as some companies that provide this service do exist.
Companies that provide finance for blacklisted individuals include the likes of: Loan Finder South Africa, Earn-a-car, No Finance Cars, JE Financial Consulting Think Money, Blacklisted Car Finance and Easy Cars.
An option offered by some of these companies includes a ‘rent-to-buy’ facility. This offer gives clients the opportunity to rent a vehicle for a set rate and period of time. At the end of the period, the client fully owns the vehicle.
In addition, it’s important to do thorough research about the lender you approach, as loan sharks are also prevalent in the industry.