According to recent statistics, 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, they are excluded by mainstream financial institutions. XCELSIOR can provide an urgent loan 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 the aftermath of COVID-19, this is certainly the reality for many people. It is difficult to meet financial responsibilities and pay the bills on time, and with increased job losses and lay-offs, this problem is worsening. Not having enough financial resources makes it difficult to remain up to date with loan or mortgage repayments. Defaulting on loans has become a likelihood for those who were able to afford the loan or mortgage when they applied for it.
A blacklisted loan is an excellent solution to help those who find themselves in a bad financial situation temporarily. Life has many unforeseen events. Although we would 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 to improve their 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 need. 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 loan for blacklisted people.
How to find out if you’re blacklisted?
There are easy and free ways to better understand your credit score. You will need to know what has been recorded against you and when you may have defaulted. All South African residents can get one free credit report per year. It is a good idea to check this report to understand what credit bureaus might have against you. Also, 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.
An online loan for blacklisted people and alternatives to a standard loan
Blacklisting prevents the person from accessing financial aid from banks, stores and 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, the regular sources may not assist 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 a loan 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, but it has its own problems. Usually, these are too small to cover your financial obligations, unlike a collateral loan, where you can borrow up to R250,000. Secondly, peer-to-peer lending has many unknowns. The person you’re lending the money from might be unscrupulous, and they certainly don’t have the reputation of a registered financial business, such as XCELSIOR. Finally, there is also a financial burden involved. 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
These tips will 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 do an affordability assessment. Ensure 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 required, but this will burden you financially with higher monthly repayments.
- 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), advise us as soon as possible so that arrangements can be made.
Here are practical tips to get your credit back into good standing:
- Check for fraudulent activity. Fraud 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, unanticipated 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 to eventually meet your financial burdens, even if it takes a few years. In a few years, you’ll be thankful that you started today.
How a loan for blacklisted people from XCELSIOR works
At XCELSIOR Loans, we have devised a way to help our valued clients with immediate access to credit. 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 will help you get the funds you need.
Our unique blacklisted loans model has been developed by industry professionals experienced in the needs of our clients. We offer loans against motor vehicle assets, including:
- Bikes
- Trucks
- Cars
- SUVs
- Jet skis
These assets can be used as collateral against the loan, making it far easier for you to get blacklisted loans from XCELSIOR Loans.
When requesting a loan from us, an assessor will view your vehicle. Of course, there is a limit on the loan amount, up to 50% of the vehicle’s assessed value, with a maximum amount of R250,000. The application process will take just 30 to 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 funds into your bank account. Acquiring an urgent cash loan for blacklisted people has never been this easy. At XCELSIOR, we are 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 to you. You will be able to instantly access a cash loan without disposing 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 with 24-hour security.
What if I can’t repay my loan?
Should you not be able to repay the loan, we will sell the asset through our associated vehicle traders. In doing so, we recoup the outstanding amount due to XCELSIOR without having to saddle you with bad debt.
How our blacklisted loan applications are different to the banks
What makes us different from other financial lending companies is the fact that we are revolutionising loans in South Africa. Instead of delving into your financial history, we simply expect you to provide us with collateral. This ensures that you will repay your loan amount in the agreed time, while not being forced to sell your asset. How we’re different:
- We don’t conduct any affordability assessments or background checks. Your asset is used as collateral against your loan.
- We’re perfect for those with poor credit records or those who are blacklisted.
- Our application process is entirely paperless 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 our branches in Pretoria East, Pretoria North, Witbank, Boksburg.
Unlike banks, XCELSIOR doesn’t do affordability assessments, which gives blacklisted customers a better chance of obtaining a loan. 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 complete and submit your application online, it’s perfect for those who need 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 you need to apply for a blacklisted loan?
All you will need is:
- Your collateral vehicle
- Your registration certificate of your fully paid-up vehicle
- A valid South African ID
- A valid South African driver’s license
- Proof of address
- Proof of bank account
Albeit minimal, we do have terms and conditions. You’ll need to be aware of the following:
- You must be able to afford your monthly instalments.
- If you are unable to repay the loan, your vehicle will be sold to cover the amount you owe 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. You can expect an answer to your application in less than an hour! Get in touch for an urgent cash loan for blacklisted people and those who have bad credit. Alternatively, apply for a loan online.
