Wednesday, March 30th, 2016
Get Cash Loans from EC Loans if you are Blacklisted or have a Bad Credit Rating. This article will explain to you what it means to be Blacklisted and how EC Loans can help you settle your debt and eventually clear your blacklisted record.
It is not uncommon for a South African to feel some sort of financial stress these days. Perhaps from falling behind on a credit payment. The last thing you’ll want to learn then, is that you are blacklisted. If you are, then the odds on a credit provider extending your credit further are not very good. The profound reason for rejecting any subsequent credit applications is that you can’t guarantee that you will be able to service a new debt, should it be granted, if you can’t service the already outstanding debt.
Consequently, you are what credit providers, in general, would consider a high risk client. And unless you get your credit history out of the red, you will continue to struggle to find a paying job and any sort of credit in the future.
The rather general term, blacklisted, applies to a few situations a credit consumer may find themselves in. It could have to do with owning an account that is in arrears or perhaps there’s a judgment against you. What is crucial to understand is that even if you resolve your debts, your credit profile can still be marred by the blacklisting record for up to five years. Let’s get specific about the circumstances surrounding blacklisted debt.
Arrears are if you have fallen behind in payments. Your credit record will show this, however no legal action has yet been taken. And at this stage, you are still able to approach a credit provider and make an arrangement to settle your debt.
If you have multiple accounts in arrears, then it may be worth contacting the National Debt Mediation Association, a non-profit organisation that can assist you in negotiating with your creditors. And if you have any particular assets, such as your car or your house, then you’re going to want to consider debt counselling, so as to protect your assets.
It is immensely important to understand that even if you do pay off any debts, the fact that you fell into arrears in the first place remains on your record, however it will be stipulated that you did indeed settle the debts. In such an event, credit providers may charge higher rates for any new credit or it may actually be difficult to obtain credit in the first place. Therefore, you must make sure your credit provider updates your details at the credit bureau to show the debt is in fact settled.
Default typically means your debt has been handed over to lawyers. And subsequently, your credit record will be stipulated as handed over or written off. If the debt is considerably small and should the creditor believe there is little chance of receiving payment, they might just write the debt off. Although, it will remain visible on your credit record for the following two years.
When collectors start calling, you can still negotiate to pay the amount off. So, immediately inquire as to whether you can come to an agreement or not. And even though the credit provider may very likely demand that the outstanding debt be fully paid. They may very well drop any additional fees and the interest charged. The debt collectors or lawyers may also agree to a discount of their fees, although any discount would have to be agreed upon.
You must find out if the original debt is with the credit provider still or if it has already been handed over to a debt collection agency. In the event that it is owned by a debt collector, the fees can account for a substantial amount of the debt, so a lump sum can often be paid if a lower payment is negotiated.
Even if you settle the debt, it will remain on your credit record for two years, but it will show as paid off. And once you receive the paid-up letter, you must send it to the credit bureaus. They then have 20 days to update the information. After that, ask for a copy of your record to ensure that it reflects your new status.
What is a Judgment?
A high court judgement is typically for any amount in excess of R 100 000. Being a legal action, a judgment is quite serious and, additionally, it is also rather difficult to reverse. Unless it was issued in error, a judgment from a high court cannot be rescinded or removed.
For lesser amounts, judgments are usually issued by the magistrates’ court and these can be rescinded if you pay off the debt. However, as usual the judgment will show on your record for up to five years as paid up. Even a paid-up judgment will be seen as very negative by a credit provider and it will in turn affect your ability to loan cash.
The view is that a judgment is only taken after a very long process has been followed and such a consumer would suggest a very high risk to any future credit provider. In order to have a magistrates’ court rescind a judgment, you must not only have your paid-up letter, but another letter stating that the credit provider agrees to the rescinded judgment. Credit providers are often reluctant to provide this as they are not legally obliged to do so. There is no guarantee, but some magistrates may rescind judgment without a letter. Either way, you will require an attorney to represent you in court.
In the event of your judgment being rescinded, it will still remain on your record for up to five years stipulated as rescinded. If you have any outstanding judgments, it will fall off your credit record after the five years, but, they remain active for up to 30 years. This means the credit provider can hold you to that debt for the 30 years.
Feel warned, because if you have a judgment, don’t think it will just go away. It is preferable that you handle – it sooner rather than later – and attempt to pay off the debt. There may be many years of inactivity from the debt collectors may be inactive for many years. Then suddenly, they will demand money from you and most likely with added interest since it kept running on the initial judgment amount. And crucially, all of this information will never be removed from the credit providers’ records.
Otherwise referred to as loans for blacklisted, bad credit loans, loans for bad credit, or cash loans for blacklisted. While all blacklisted persons can apply and may qualify, not everybody will be approved depending on their credit status.
You may have applied for a cash loan recently, but you were rejected on account of having bad credit. However, this is not uncommon. Every year, more and more South Africans are experiencing the same struggle and there is no shame in asking for a loan. You won’t know whether you can be helped you or not, if you don’t ask. There are credit provider companies happy to assist you in determining whether or not you qualify as a blacklisted credit consumer.
EC Loans is one of those companies that are happy to assist you. It has credit providers willing to overlook certain financial mistakes made in the past. Provided you can afford the loan, you stand a chance of being granted one. Each credit provider will have varying sets of rules for credit scoring and blacklisting, typically unique to each applicant. Make no mistake though, credit scores will be reviewed, but along with the following criteria.
• Permanent employment with a salary able to afford the loan.
• Not in administration, debt review or sequestration.
• Salary paid into valid South African bank account in your name.
• Account holder has a valid South African green bar-coded ID.
Do you meet the requirements to qualify? At the very least, if you hold a permanent job and you are not currently receiving debt counselling and have a South African bank account as a South African citizen, you are in a good position to qualify. The best way to find out though, is to complete an application form so we can assist you. There is no better way to help you without the sufficient information required, which can only be provided by you.
EC Loans offers cash loans for blacklisted clients from Cape Town and all across South Africa. Don’t let a bad credit score stop you from reaching financial freedom. Consult EC Loans and let us help you improve your credit rating. Visit the Blacklisted Loan Application page on the EC Loans Website to learn more About Us and Apply Now!