Bad Credit Home Loan definition: A bad credit or poor credit home loan is a home loan that is granted based on bad credit ratings with the bureaus. The lower your credit rating the higher your interest rates given plus the lower the amount offered will be from the banks.
Do South African banks still offer bad credit home loans?
The small answer here is “NO”.
I have a bad credit history
So many home owners and home buyers are looking for bad credit home loans. More and more people today are falling into the debt trap and most people don’t actually realise that they’ve got major problems with the credit ratings and poor credit make it’s very difficult to qualify for a home loan. The trick though is to do your home work. If you do not take the time that is necessary to secure a home loan that offers you fair and the best available interest rates and terms, you could be spending far too much money on the home loan you need.
The good news, is it’s not all bad news.
Improve your credit score and increase your chances;
- Find out what your current credit score is
- Find out how bad credit affects your daily lifestyle
- Find out how to improve your current credit score
- Find out what the benefits to a good healthy credit score is
With a better credit score, you’ll qualify for a home loan with better options, lower interest rates and lower payments.
Gone are the days of the bad credit home loans though. With the NCA in place and the credit act that’s now taken South Africa by storm, bad credit home loans have vanished. It’s unfortunate that in this day and age, people do not know how to manage their credit ending up having to do debt consolidation and put themselves into such bad debt, but it’s not the individual alone that’s caused the demise of the bad credit home loan.
Banks prior June 1st 2007 were issuing home loans left right an center. People with bad credit records got bad credit home loans and people who couldn’t afford them got home loans too. Thus appeared the NCA and with that vanished the poor credit home loan.