According to recent statistics released, more than half of South African consumers have an adverse listing on their credit record. Consumers have a staggering amount of debt and will find it difficult to source credit from mainstream credit providers such as banks. However, this doesn’t mean that these consumers don’t need access to credit, yet as they have an adverse listing on their credit records’ they are excluded by mainstream financial institutions. XCELSIOR provides urgent loans for blacklisted people when others cannot.
Why are blacklisted loans on the rise in South Africa?
Most people find themselves short of cash at some stage in their lives. In fact, in the current economic climate and considering the devastating role of COVID-19 this is certainly the reality for many people. It is difficult to meet all financial responsibilities and pay all bills on time, and with the current rates of job losses and lay-offs, this problem is increasing. Not having adequate financial resources often makes it very difficult to remain up to date with repayments of loans or mortgages, while defaulting on loans has become a likelihood for those who were able to afford the loan or mortgage when they applied!
A blacklisted loan is an excellent solution to help those who are in a temporary bad financial situation. Life has many unforeseen events, and although all of us who ideally like to have a few months’ salaries saved, emergencies happen. This is why many blacklisted consumers are turning to collateral-based loans, to help them for a few months until they find their footing and achieve better financial well-being.
Why should I care if I get blacklisted?
Many South Africans will never need a credit loan; however, considering that almost half of all South Africans have an adverse record listing, this may affect you. If you end up getting blacklisted, it can and will have a detrimental effect on your financial situation. Think about your future and the credit you’ll require. Now imagine never buying a house, starting a business, or even getting credit to feed your family. If it doesn’t affect you personally, you will likely know someone who will benefit from a blacklisted credit loan.
How to find out if you’re blacklisted?
When it comes time to understand your credit score, there are easy and free ways to gain an understanding. To understand your credit score, you will need to understand what has been recorded against you and when you may have defaulted. All South African residents can obtain one free credit report per year. It is a good idea to check this report to understand what credit bureaus might have against you. It is also a good idea to check the report to identify if there are errors. With the rise of fraud, it is not uncommon to have fraudulent activities recorded against your name. Using a tool like ClearScore will help check your credit report.
Online loans for blacklisted and alternatives to a standard loan?
Blacklisting prevents the blacklisted person from obtaining financial aid of any kind from banks, stores or other financial services providers. If you are blacklisted, you will find it virtually impossible to qualify for any type of loan from the usual providers. In emergencies, most people are forced to borrow money from other sources such as family or friends. Some are even desperate enough to borrow money from loan sharks which are expensive and not always done by the book, not to mention the potential physical harm to yourself and your family!
If you are blacklisted and find yourself in a position where you desperately need money, you will find it very hard to go through the regular sources to borrow money as your blacklisting will count against you. Blacklisting means that you are deemed a credit risk, and obtaining cash loans from any source, even if you do have assets offered as security, is very difficult.
A popular way to address the challenges of poor finances when blacklisted is to opt for loans for blacklisted people, otherwise known as pawn loans. Pawn loans are only approved if you have collateral and at XCELSIOR, we accept fully paid off vehicles (that must be registered to the applicant) as collateral.
If you are blacklisted, loans are now easy to come by – simply call us or apply for a secured short term.
What about peer-to-peer lending?
Peer-to-peer lending has grown in leaps and bounds however there are inherent problems with peer-to-peer lending. Usually, the loans provided by peers are too small to cover your financial obligations, unlike a collateral loan where you can loan up to R250,000. Secondly, peer-to-peer lending has a lot of unknowns. The person you’re lending the money from might be unscrupulous and they certainly don’t have the reputation like a registered financial business, such as XCELSIOR. Finally, one must also consider the financial burden that peer-to-peer lending can have, often these lenders require great returns from the borrower, which means less money in your pocket over the long run.
How to manage your new loan and rebuild your credit record?
Below are a few tips that our team have put together to help you manage and afford your new loan or future loan more effectively:
- Choose a loan that offers a low-interest rate.
- Before accepting a loan, draw up your own budget and affordability assessment. Ensure that you can afford to pay the monthly amounts before committing to the loan.
- Do not opt for long-term loans. Getting tied into long-term loans could turn into a financial problem – especially if you are not sure what your future finances will look like.
- Never take out a loan for more money than you need. It can be tempting to take on a large sum – more than is required – but this will merely burden you financially with higher repayments each month.
- Make sure that you make your monthly loan payments on or before the due date.
- If you are going to be late with a payment or your banking details change (for the debit order), make sure that you advise us as soon as possible so that arrangements can be made.
When it comes time to rebuild your credit record, below are some great and practical tips to get your credit back into good standing:
- Check for fraudulent activity, as previously mentioned fraudulent activity can negatively affect your credit score and might be the sole reason behind your bad credit.
- Pay your credit card balance, credit cards carry high interest rates and when used correctly can be a great way to absorb a high unaccommodated expense. However, paying off the owed balance will help put you back on the right track.
- Settle your debts, if you are deep in debt this may seem impossible. Yet it is important to put together a plan of action in order to eventually meet your financial burdens, even if it takes a few years. You’ll be thankful that you started today, in a few years time.
How XCELSIOR’s Loans For Blacklisted People work
At XCELSIOR Loans we have devised a way to help our valued clients with access to credit immediately. Our innovative blacklisted loans model will have you flush with cash in less than thirty minutes. We are proud of our unique products and services, and we will help you gain access to the funds that you need. We are dedicated to helping our clients access cash loans due to any of life’s unforeseen circ*mstances.
Our unique blacklisted loans model has been developed by industry professionals who are experienced in the needs of our clients. We offer loans against motor vehicle assets including:
- Bikes
- Trucks
- Cars
- SUV
- Jet skis
These assets can be used as collateral against the loan, making it far easier for you to access blacklisted loans from XCELSIOR Loans.
When requesting a loan from us, we will send an assessor out to view your vehicle. Of course, there is a limit on what we can loan you. We can only loan you up to 50% of the vehicle’s assessed value, with a maximum amount of R250,000 set in place. This is done for the benefit of both you and us. The application process will take just 30-45 minutes of your time and if you are happy with the assessed value and the loan amount, we will take the vehicle to our storage facility and immediately transfer the required funds into your bank account. Acquiring an urgent cash loan has never been this easy and at XCELSIOR, we are only too happy to be a part of this process.
Where are your collateral assets stored?
We will store your vehicle safely in a secure facility. Upon settling the outstanding loan, we will immediately return the vehicle back to you. This will allow you to instantly access a cash loan without having to dispose of your valuable assets. If you are concerned about the safety of your vehicle, don’t be. Our storage facility is in a secure location and has 24-hour security included.
What if I can’t repay my loan?
Should you not be able to repay the loan, XCELSIOR will sell the asset through our associated vehicle traders. In doing this we will be able to recoup the outstanding amount due to XCELSIOR without having to saddle you with any bad debt. Should there be any funds left over after the sale of the asset, we will pay it over to you. This is only one of the many ways in which XCELSIOR aims to stand out from the crowd of other micro-lenders. We provide this information upfront so that you know you are dealing with a reputable micro-lender.
How our blacklisted loan applications are different to the banks?
What makes us different from other financial lending companies? The fact that we are revolutionising loans in South Africa is what makes us different. Instead of delving into your financial history, we merely expect you to provide us with collateral. This ensures that you will repay your loan amount in the agreed time, while not having to sell your asset. How we’re different:
- We don’t conduct any affordability checks, assessments or background checks, your asset is used as collateral against your loan
- We’re perfect for those with poor credit records or those that are blacklisted
- Our application process is entirely paper free and can be completed in less than thirty minutes!
- If you’re not able to fill out our easy online form, you can visit one of the premises. These include Pretoria East, Pretoria North, Witbank, Boksburg (appointment only), Rivonia and Pinelands.
Unlike banks, XCELSIOR won’t do any affordability assessments and this gives blacklisted customers a better chance of obtaining a loan through us. We will also process your loan on the same day to make sure that there are no delays and that your application is finalised as soon as possible. Since there is minimal paperwork required and you can fill the application in online, it makes it perfect for those in need of blacklisted loans with same day approval.
It is no secret that our private equity funded business is revolutionising the loans industry and it’s not just because we offer blacklisted loans.
What will I need to apply for a blacklisted loan?
All you will need is:
- Your collateral vehicle
- A valid South African ID
- Proof that you reside within the country.
We have terms and conditions, albeit minimal. You’ll need to be aware of the following:
- You will need to be able to afford your monthly instalments
- In the event of not being able to repay the loan, the vehicle will be sold to cover the costs and settle the agreement
- When or if you complete your payments; you will be reunited with your vehicle at the end of your loan contract
XCELSIOR provides an easy application process that does not require any paperwork and you can have an answer to your application in less than an hour. Get in touch for an urgent cash loan, blacklisted and bad credit applicants are most welcome! Alternatively, apply for a loan online.
