Loans for bad credit score are largely offered by money lenders to finance companies and individuals who have been rejected by banks and various other financial institutions such as building societies and credit unions. When banks loan money to people, the borrower should at least reach a minimum balance in their accounts and a certain level of monthly income to qualify and as such money lenders and other financial institutions takes the risk to finance such people after seeing the potential in them of paying back.
Loans for bad credit score are referred to as unsecured loans because the creditor will have to wait for the borrower to generate profits to pay back, a system which can take months or years to perfect. Loans for bad credit score are given on a high risk because the borrower will be in no condition to pay back the money early and there are also recorded cases where borrowers fail to pay back money when their businesses fail in the market.
There are many companies and money lenders in South Africa that offer loans for bad credit score to individuals who are at least 18 years old and above. Borrowers are supposed to produce proof of identification, proof of income, proof of residence and many more. People can use the internet to search for companies that provide bad credit score loans and apply on their websites.