As a rule, loans for bad credit should just be avoided overall or, at least, be an absolute last resort.
Not only do loans for bad credit have really high interest rates and severely short repayment terms, but they are also mostly offered by untrustworthy lenders. Loans for bad credit are referred to as bad debt for a reason.
Loans for bad credit ensnare people in a bad debt trap, and cause them to struggle with their finances and suffer from poverty for the rest of their lives.
If you insist on searching for loans for bad credit, you should know just how bad your credit situation is before jumping the gun. Moreover, you should examine why you have bad credit in the first place, so you can avoid repeating the same mistakes i.e. taking out loans is not a good idea in general!
In some cases, bad credit may not be your fault, but rather a mistake on the part of the credit bureaus, credit providers or criminals. This is why it’s so important to check your credit report regularly to ensure you are, in fact, the one responsible for the bad credit.
You can get a free credit report each year from all of the major credit bureaus in South Africa if you ask for them. You can check your report to see if any of your credit providers accidentally listed you as a defaulter.
You will be able to tell from your payment history if you are the victim of identity theft and have bad credit you are not liable for. You can then ledge a complaint with the credit bureau and with the National Credit Regulator (NCR), to have this bad credit removed from your profile.
Voila! A good credit report and a wonderful sigh of relief!
Remember that loans, on the whole, are risky and dangerous. Especially in a country like South Africa, where inflation is high, the economy is slow, and income is low and uncertain. South Africans should really be focusing on settling their debts and building up their savings, as many experts believe we are close to falling into a recession.