Dealing With Bad Credit: How Can You Get a Loan?

Feb 04, 2021
bad credit

For years, hundreds of thousands of South Africans have been affected by poor credit scores that severely affect their daily lives. With even the smallest of deductions causing sharp increases in interest rates for loans and adding more difficulty to the application process, there’s no doubt that having a poor rating can make life harder.

If you’ve been borrowing and applying for loans for a while now, you’re probably familiar with the difficulty of dealing with a low credit score and a bad lending history. Unfortunately, a string of bad borrows and costly errors in your youth may have landed you in a spot where you’re suffering from the same problem.

What does it mean to have bad credit?

Bad credit refers to a state wherein one has a sub-optimal score that restricts them from seeking certain benefits or privileges.

The main reason bad credit bears such a stigma is that it is often tied to poor borrowing habits or terrible borrowing behaviour because every mistake lends itself to a mark on the records that authorities keep. While there are many different causes of bad credit, there are some common mistakes that you can make that will leave you in a spot with a bad score: 

  • You haven’t made the monthly repayments on time
  • You’ve missed the repayments altogether
  • You’ve been declared bankrupt
  • You’ve had a court judgment against you

The main problem with having the lowest credit score (and a solution to consider)

With a score around 550 and lots of pressure to keep up with living costs, you will realise that one of the biggest problems now is getting a loan for your needs. 

Today, the rising standards of living costs and their significant impact on the way people take care of their finances have caused a tremendous amount of panic among those with lower credit scores. What these problems bring is that many South Africans will be forced to shy away from loans or make drastic changes to their lifestyle with a minimal margin for error—something that isn’t too sustainable. 

Thankfully, gone are the days where a poor or low credit score meant that loans are no longer available because specialised programs like bad credit loans have been developed to remedy the matter at hand!

On getting a loan with a low credit score

When it comes to getting a loan with a low credit score, the first solution that you’ll need to consider is that you need to invest or apply for a bad credit loan.

In essence, these loans are specifically designed to cater to people with poor credit histories and other related problems that limit their ability to seek financial assistance. With a lower set of standards and a nearly-nonexistent barrier to entry (along with widespread availability), these loans can be sought from dependable establishments like Hoopla Loans by applying online!

The compromise

Before you get a bad credit score, it is worth noting that there are some conditions that you’ll need to watch out for because they can lead to a better outcome or complete disaster.

You see, bad credit loans—although accessible—have a much higher rate of interest because they’re given to applicants who establishments see as higher-risk candidates due to their low scores. If you choose to invest in this particular solution to meet your financial needs, then you must pay on time and rework your financial habits so that you don’t end up pulling your score down!

Conclusion

When it comes to dealing with bad credit, it’s definitely critical to understand that getting a loan can be quite difficult because of the conditions that such a predicament brings, but this is where bad credit loans come into play. Thankfully, keeping an eye on the solution in question and coming in prepared will allow you to maximise it in the best possible way without further complicating your issues! 

We’re an online loan provider in South Africa that offers payday loans for those needing a credit score boost with a quick and easy process. Check out our website to apply for a loan today!