A Quick Guide on Getting a Loan Even with Poor Credit – What to Know

February 27, 2020

So, you are having financial issues, and you’re nearly down to your last rand until your next paycheck, which is still a month away. To top it all off, even your credit score is discouraging you from taking out a loan. 

Although you may be struggling with your finances, the truth is that financial difficulties are actually a common experience for most South Africans in the country. Admittedly, it can be quite a struggle to deal with financial hardships when all your resources are exhausted, and your credit isn’t in your favour. Yet, know that small loans are still a possibility even for those with the worst credit. 

Thanks to the updated lending structures that South Africa’s providers follow and a few key changes to the entire system, there is now an abundance of different options that are available for those who need cash quickly.

With a quick online search, you’ll be able to find thousands of different loan providers who can immediately ease your financial qualms and get you some much-needed assistance right away. Nevertheless, keep in mind that not all options are safe ones to seek. Before you drop everything and opt for small loans to save yourself of a dire financial situation, here are a few types of small loans that do not have your best interest in mind: 

Title loans

In terms of function and structure, title loans work similarly to payday loans, but the situation that they can put you in will easily prove to be far worse. 

While they can be easy to avail of for anyone with poor credit, they entail pledging an asset with significant value (such as a car or house) and have exorbitantly-high fees. In essence, these high fees make it nearly impossible to pay off the due amount from the first month onward, making it easier to lose the pledged title to your high-value property in an instant. 

Pawnshop loans

At one point or another, a dire financial situation may have probably caused you to consider seeking the services of a pawnshop for some much-needed help. More often than not, however, this decision can easily put you at risk. Similar to title loans, pawnshop loans require submitting something of high value in exchange for quick financial assistance. Sure, a pawnshop loan may definitely help, but the terms and conditions of a standard loan are engineered to work against the borrower and use high fees and difficult terms to eventually claim the pawned item. 

What to do if your financial situation is not changing

While it may seem like all hope is lost as your possible options seem like they’re working against you, there’s actually no need to worry because personal loans are a quick alternative that can turn your situation around with low risks.

Through the use of a personal loan from an online lender (such as Hoopla Loans), you’ll be able to set yourself up with some much-needed financial assistance that can easily be paid off in instalments. As opposed to other loans that enforce a fixed-duration repayment term that can be difficult to manage, online personal loans come with adjustable prepayment periods which make for a more convenient experience.

Aside from being far easier to work with, however, a personal loan from an online lender can also provide a more desirable experience as they don’t require high credit scores and can be applied for and granted in a matter of hours! 

Final words

No matter how poor your credit score may be, it’s always important to consider the fact that there are financial assistance options out there that can help make a difference in your situation. Nevertheless, it is important to ensure that you aren’t taking out the wrong loans.

If you are in South Africa, are currently struggling with a poor credit score, and need vital financial assistance, then get in touch with Hoopla Loans today!