Trying to get a personal loan can be quite a daunting task if you have any type of bad credit. Fortunately many non-traditional credit providers have less strict criteria compared to banks.
Some micro lenders offer help for people with compromised credit records.
How do people get bad credit records?
The loss of a job through retrenchment or dismissal may often leave many individuals unable to meet the demands of their debts.
Others simply have not developed credit records yet, due to never having applied for any form of credit.
What are consolidation loans?
Consolidation loans may be a solution for you if you are struggling to repay multiple debts. It is a new single loan that essentially covers the payment of multiple debts you may have. Consolidation loans can be arranged by financial institutions and may come with the benefit of a lower interest rate and a lower instalment overall.
What consolidation loans for bad credit are:
These are consolidation loans that are specifically designed to assist individuals with bad credit to improve their credit scores. Individuals who are struggling to keep up with repayments on multiple debts can benefit. These individuals must be considered to be over-indebted in order to be able to qualify for consolidation loans.
With careful planning, this may be the most effective option.
What are the benefits of consolidation loans for bad credit?
Most lenders have easy application processes. As an applicant you can expect discretion and efficient service. You won’t have to wait in any long queues to apply.
Some lenders like www.bad-credit-loans.co.za charge a once-off fee for their services.
Other direct loan lenders such as SA Loan Services have over 10 years of experience in the lending industry and are able to facilitate the application process from start to end.
You have a way of getting out of the debt trap with the assistance of trained debt counsellors.
When done correctly it can help you improve your credit run in the long run.