Why you can’t get financing for a car loan
Needing a car to get to work and improve your credit rating, but being unable to get the car, can be a terrible cycle to break out of.
How did you get into this issue, and how can you get out?
First let’s look at the types of loans there are out there so that you can assess which of yours may be in arrears.
There are 7 types of loans that ITC, the South African Credit Reference Agency tracks:
- Personal loans
- Credit cards
- Vehicle Financing
- Furniture accounts
- In-Store accounts
If you have gone into arrears because of missed payments with any of these types of loans you will likely be on a blacklist of individuals who will have difficulty getting a loan. Statistics show that 1 in four people in South Africa are credit blacklisted. That is about 5 million people. The good news is that you are not alone, and that you will not be blacklisted forever if you take the right steps.
To know for certain if you are blacklisted or have bad credit check with an agency that provides credit status checks. These companies can, for a small fee, get you a report which details your credit report and what your creditors think of you. This is valuable information you should obtain before you even apply for a loan that can take as little as an hour to get back. Finding out if you have defaulted and working to consolidate that loan and get on track, is the best thing you can do to get off the blacklist.
You’re going to need to get to work during this. How can you do that? Earn a Car has a program for blacklisted individuals that allows them to pay an upfront cost, make monthly payments, and earn money back that they can use to buy the car they are renting if they choose. If you can’t get financing, Earn a Car can help get you back on the road.