Payday loans are designed to provide cash quickly to the people who need it ahead of next payday. These are perfect loans to borrow when it comes to paying back some urgent bills to avoid penalties on late payments. Sometimes, a late payment is recorded in a person’s credit history and lowers the credit rating and score. In turn, this makes borrowing of a new loan even more difficult for the people whose credit history is already bad. Payday loans for blacklisted are such financial tools for people whose credit history is severely damaged.
Blacklisted people are those whom banks and other big private lenders do not want to lend any money. This is because the lenders carry many risks in offering a loan to these applicants. Such people made several payment mistakes and many of them were serious. Some of the blacklisted people may be those who have filed for bankruptcy. Since their repayment ability is doubtful, the lenders want to keep a distance by ignoring them for a loan.
However, that is not the case with the lenders who provide payday loans for blacklisted. They do not worry much about the risks such borrowers are carrying.
No credit checks
One of the reasons why blacklisted people can rely on blacklisted loans is that they are not subjected to credit checks by the lenders. So, the loan providers approve some cash without checking the credit history of the applicants. This means that even with a low credit score you can always borrow cash to get rid of urgent bills. For this reason, payday loans for blacklisted are always a good option when some unforeseen expenses are to be met on the same day.
A reason for lenders not making credit checks on blacklisted people is that they do not have many risks in lending small cash to the employed people. Moreover, they verify the employment status of the applicants. They also have the documents such as the borrower’s salary stubs of the last many months. This means that smaller cash can always be paid back without any burden on the next paycheque. Considering these things, a lender can think of earning good interest money from giving some cash.
The loan amount
So, how much cash the blacklisted people can borrow? Cash loans for blacklisted people are small cash loans. A typical range of cash for the South African people under these loans is R 500 to R 150000. Most people will be approved cash on the lower side of the range. However, if the applicant draws a good monthly salary, higher cash amount is also a possibility for the borrower.
The lender will first assess the actual repayment ability of the borrower. This means that the cash the applicant has in hands after paying for the monthly expenses will determine the amount of cash under the loan.
Who is qualified?
So, who are the blacklisted people getting these loans? First, it is a necessary condition that you are a resident of South Africa. You may be asked to furnish the proof regarding this. Secondly, to apply for these loans, you must be an adult of more than 18 years of age. If you fulfill these two conditions, then the third one is that you are currently in a job. The job must be giving you a fix monthly salary for past few months at least.
Easy repayment schedule
Another reason for the popularity of easy loans for blacklisted is that these are easily payable. You do not have to carry the loan for a long duration unlike many personal loans and secured or unsecured loans. The lender will set the repayment date as your next payday. This means that you are able to get rid of the loan repayment in just one to two weeks.
There is no repayment burden on your paycheque as the approved cash is as per your existing financial ability of your paychqeue. However, remember that these are costly loans if you delay the loan repayment. With each passing day after the due repayment date, you will be paying additional penalties in the form of interest rates. Therefore, pay off the loan on the due date.
Compare the lenders
You should first compare as many lenders as you can online. The payday loan lenders want to draw the customers and so they offer the loans at competitive rates. You can compare many such lenders who are delivering the cash to South African residents. This way, you can reduce your interest payment and fee charges of the lenders to some extent.
While payday loans for blacklisted are easier to get, make sure that you do not delay its repayment in order to avoid any expensive cost. Use the loans only for urgency purpose.