Getting vehicle finance can be very difficult if you have a bad credit history. Your name might have been blacklisted and you may find it tough to get loan from any bank. However, being blacklisted is not the end of the world. Having a bad credit history does not mean that you would be blacklisted forever. It is possible for you to improve your credit ranking and get a car.
If you think that being blacklisted is something to be ashamed of, then stop thinking this way. Studies indicate that one out of every four people in South Africa has a history of bad credit. These bad credits may arise due to defaulted payments, pending payments on credit card and other such reason. So, if your bad credit history bothers you then you can start working on it and improve your credit ranking.
For this, you may first obtain your credit report from ITC, which is a Credit Reference Agency in South Africa and maintains the credit report of the blacklisted people. With the help of the report you may be able to know where you stand. It would also help you to see if there is any inaccurate information and you can get that rectified.
How to improve credit ranking?
- In order to get a good ranking, try to consolidate your past bad debts and start paying your bills on time.
- Maintain a checking and a saving account in banks as it would also help you to get a good credit ranking.
- Do not max-out on your credit card and try to use it when necessary only.
All these factors help in improving your credit ranking and are important.
How to buy a car while blacklisted
In case you are blacklisted and need vehicle finance, don’t be disheartened. There are special financial institutions like Earn-a-car that can still help you get your car. With Earn-a-car, you don’t have to worry about your credit history as it is not considered. The loan applicant just needs to fulfill certain basic conditions wherein he is required to submit some documents. So even if you are blacklisted, you can still drive home your own car.