Understanding the Open Ended Loans for Blacklisted
Posted by financial advisor on
Even though loans for blacklisted may not be available from lenders like Grindrod Bank, Standard Bank and Bidvest Bank, they can be readily obtained from smaller lender. What's more, borrowers have a variety of products to select from. You should consider the open ended loans as well.
What are open ended loans for blacklisted?
These are basically lines of credit. You have a fixed amount of money available to you.
You can withdraw as much as you need every month up to the set maximum limit.
Usually, if you repay the withdrawn amount within a fixed period, usually by the end of the set month, you will owe no interest. Then revolving interest kicks in. It is charged on your entire outstanding debt. You have to make minimum payments to keep the loan. It is important to note that even if you have not paid your existing debt, you can still take out money.
There are two main types of open ended loans
Firstly, you have the classic credit cards which work in the way described above. Then there are home equity lines of credit. For these, you need to place your house as collateral. You get to make withdrawals as per your needs. However, you always get to pay interest on the withdrawals. There isn't an interest-free repayment period, but there are minimum payments which are usually interest only payments. At the end of the period of the line of credit, you will have to pay the outstanding balance.
The open ended loans for blacklisted give you access to cash at any time, but they can be quite costly. The home equity lines of credit are often easily available, but they put you at risk of losing your home.