Struggling With Bad Credit? Here’s What You Can Do

November 04, 2020
bad credit

You don’t always have to be on a winning streak in life. Sometimes you get a curveball that puts you at some of the lowest points in your life. This could be in the form of dealing with divorce or getting fired from your job. Every negative event you experience will have consequences in other aspects of your life.

Dealing with life problems while being behind on your financial dues can be a terrible combination of events. These can build up over time and prevent you from accessing better financing options for your routine loans and mortgages. It’s an unfortunate situation that puts you with a case of bad credit.

Understanding the disadvantage of bad credit

Having bad credit is a financially disadvantageous position to be in, especially if you’re currently managing a financial crisis. Since you have limited loan options available, you may end up getting stuck with an enormous amount of debt in the future. However, people in debt can still overcome their financial dilemma even with bad credit.

Poor credit ratings are usually a disadvantage to most people. It’s what warns banks and credit unions that you’re not a reliable borrower, at least for the past 2 years or so. Since they will assume that you’ll be a risk for timely repayments, they may outright ignore your applications. Even though you have bad credit, you can still apply for personal loans to improve your current financial standing.

Applying for a small personal loan

Small personal loans are excellent for life’s curveball emergencies, from home repairs to medical bills. You can also use it to clear off small amounts of credit card liability to ensure that you’re not accumulating outstanding balances. Thankfully, you don’t need a high credit score to apply for one. Although the criteria for South African lenders will vary, all you’ll need to show proof for the following:

  • 18 years of age and above
  • SA residency and citizenship
  • Current permanent employment
  • Monthly income of R5,000 and above

If you can meet the requirements above and you’re not under debt review, you can agree to a credit check to apply for a small personal loan.

Double-checking before you lock in with a personal loan

Although personal loans don’t demand a high credit score, it will have a considerably higher interest rate depending on what your current standing is. This is because lenders will still want to gauge your viability in meeting the repayment deadline. It’s a small requirement to consider, especially since most traditional lenders will immediately deny your application for other loans.

If you’re planning to loan a few hundred dollars, expect a repayment period of around 12 months. You have the option of choosing weekly, monthly, or fortnightly repayment deadlines. Additionally, you could request to pay off the borrowing in full before the original repayment term if you’re capable. 

However, you may need to consult with your lending company if they provide this option. Before you settle on your lender, make sure to do your research if their rates and payment packages will be favorable for your financial standing.


Experiencing financial struggles doesn’t mean that you’ll be on a steady road downhill in your life. Even your credit score will improve over time after you finally develop sustainable financial practices. This is why you shouldn’t lose hope when looking at your financial options. By being familiar with the opportunities you’re eligible for, you can make better financial choices for your future.

Thankfully, finding your loan options is now easier with the internet’s help. Hoopla Loans is an online-based loan broker in South Africa that gives you an efficient application system for your financial requirements. Contact us today, and our platform will help you with your financing!