How Many Loans for Blacklisted Can You Take Out?
Posted by financial advisor on
The number of lenders offering loans for blacklisted in South Africa has grown immensely over the past few years. Numerous people have been unfairly blacklisted or unfairly kept on such lists by the credit bureaus and there are plenty of companies that are willing and able to cater to their needs.
Given that you have had bad experience as a borrower, it is normal to ask all kinds of questions about these financial products. One of them is whether you can take out more than one such loan.
The loans for blacklisted work in the same way as the traditional ones available from major lenders like Nedbank, African Bank and Grindrod Bank. Most loans of this type are unsecured. This means that the borrower relies on their income to repay their debt.
If you have taken out such a loan and you apply for another one, the lender will check whether there will be a sufficient chunk of your income left to repay your new debt along with repaying the existing one.
This is because in case of default, the primary lender's rights will be exercised first. If you have enough income to repay both debts, you may be approved for a second loan.
You can take a second loan for blacklisted in order to consolidate your debt. The idea is to borrow money at a more affordable rate in order to repay your existing debt and use the remainder, if any, for personal needs. That way, you get to reduce your debt and financial burden automatically. Consolidation options are available but they have terms and conditions which you should look into carefully.
If you have taken out and repaid a loan for blacklisted, you should be able to get another one without any hitches. You will most likely secure lower interest rate too.