Blacklisted Car Finance in South Africa
To find blacklisted car finance through major banks and reputable lenders is impossible, however, there are other alternative options to get your hands on that dream car you have always wanted.
Having a blacklist flag on your name is a very frustrating situation because none of the financial providers will want to help you.
Whether you are unemployed, employed, have bad credit or i under debt review, we all need extra cash to get us through the month.
Usually, we all relay on applying for personal loans during the month through banks and private lending companies to finance us where our salaries cannot cover us.
Blacklisting means that the credit bureau has flagged your name to alert lenders that you are not a reliable and trustworthy borrower.
Once your name has been flagged, many banks and major lenders will have a problem lending you money.
If you have bad credit and find that your name has been flagged, how do you apply for blacklisted car finance.
Blacklisted Car Finance Guide
The following are tips on how you can get car finance if you're application has been declined by major lenders and South African banks.
Apply for Bad Credit Loans
For those who have poor credit, there are bad credit lenders in South Africa that are willing to provide those who have been previously flagged with personal loans.
Unlike loan shacks (Mashonisa), who provides finance with no agreement and paperwork in place, bad credit lenders offers finance with strict terms and conditions.
Many of these lenders will only require proof of income to ensure that you are able to pay back your borrowings, however they apply high interest rates of your total repayments.
If you were declined for car finance because of your credit status, you can simply apply for these personal loans and purchase a vehicle.
Buy Cash
If your name has been flagged into a blacklist with the credit bureau, buying a car cash would be the best option, which will also require no documentation.
The only problem that we all have is saving up to buy a car, however this method will save you thousands of rands from interest which is always applied by lenders.
Use Micro-lenders
Another alternative is to apply for finance through micro-lenders that also will not require any documentation or conduct credit checks on your profile.
How does some of these micro-lender’s work?
Many of these micro-lenders are not too strict on your credit profile, all that they need is an asset that they can use as collateral.
For large amounts like 80 000+, you might need to use your property or choose an asset with a value that will amount to the borrowed funds.
If you fail to pay back your borrowings, the lender will sell the asset to cover the loan expense.
Ask a Friend
Another alternative to buying a vehicle when looking for blacklisted car finance is asking a friend or relative with good credit profile take debt on your behalf.
This technique has been used a lot in many years, but has also ruined lot of relationships between friends and family.
Repair Credit Profile
One best and recommended method of buying a car is by fixing your credit profile which will enable you to access any type of finance.
If you have a good credit profile, you will be legible to qualify for home loan, personal loans, get a cell phone contract and car finance with any dealership.
Check with Dealerships
Many dealerships provide finance, their finance options comes with high interests rates, however most of them are willing to provide finance to those who are blacklisted and people with bad credit.
Usually, their requirements are based on proof of income and eligibility.
Proof of income is most likely to be your 3 months bank statement, account where salary is deposited and payslip.
They don't conduct intense credit background checks like personal loan providers and banks.
Conclusion
The most viable way to find blacklisted car finance is by using one of the above listed options and methods to avoid any credit checks.
However, we would advise you to take care of your credit profile, healthy credit history will allow you to have access to all types of finance solutions.
