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For people with bad credit records, obtaining financial assistance in any regard can be quite an uphill battle. Financial institutions and lenders tend to be weary of lending money to people who cannot prove that they are responsible payers with stable financial records.
Purchasing a car in cash is mostly unheard of, so if you want to buy a car you will most likely be dependent on obtaining some kind of financing. For those people who have been blacklisted, getting financial assistance from banks and other financial institutions will be virtually impossible. However, there are ways to obtain car finance if you have been blacklisted.
How It Works
When applying for car finance you will undergo a mandatory credit check. This process will reveal your credit rating and if you have been blacklisted, your application will either be declined or dealt with in a different manner. Financial institutions and lenders that accept applications from blacklisted people generally have interest rates that are much higher. The inflated interest rates are instituted to protect the lenders from the higher risk that blacklisted people pose.
When seeking finance it is important that you have a clear idea of what your budget will allow. Your affordability will be checked so even though your credit rating will not be taken to affect your eligibility, you must be able to prove that you have an income and that you can afford to make the payments on your car.
Keep in mind that your car payments will be for the amount of the loan including the higher interest rates as well as insurance. Having your vehicle insured is mandatory and serves as protection for both you and the lender supplying you with car finance. Since the cost of obtaining car finance when you’ve been blacklisted is so much higher, it is best that you opt for a cheaper vehicle to keep your expenses down.
Finding Car Finance
Lenders who are willing to accept applications from blacklisted people in Gauteng can be found by checking local newspapers or doing an online search. Many of the larger dealerships in the Gauteng area have specific plans and policies in place for people with bad credit records who require financial assistance.
It would be a good idea to start by enquiring with various dealerships about the financial assistance they offer and whether they can refer you to any reputable lenders that deal with blacklisted people.
Car finance loans don’t all have the same interest rates so be sure to take some time and investigate your options with at least three or four different financial institutions. Interest rates on loans for blacklisted people are much higher so it is best to look around to find the best option for your budget.
Some dealerships have options where you can lease a car from them and pay a monthly fee for a specified time, after which you will then own the car. This leasing option is another kind of financial assistance that makes owning your own car a lot easier even though you are blacklisted.