Homes are valuable possessions and can also be one of the most expensive purchases you will ever make in your lifetime. This means that many of us have to rely on other ways to finance our home purchases.
A popular way of buying a home is through a home loan. They can be useful where upfront cash payments are not always possible.
This may be great news for you if your credit standing is in order. If you have a bad credit record however, things may seem uphill almost constantly.
Becoming over-indebted may be as a result of poor financial management or an unpredictable economy. Unexpected circumstances, such as a hefty medical bill can leave one financially crippled and often scrambling to find ways to pay for various debts they may have outstanding. This may lead to a bad credit record, which may mean you are blacklisted and unable to take out any further loans. When your credit rating becomes bad enough, you may be labelled as blacklisted with one or more credit bureaus.
Can you get credit for a home loan as a blacklisted person?
Some banking institutions do make exceptions for blacklisted individuals, but certain restrictions may apply. You can also approach other financial institutions such as micro-lenders, but this may also come at a cost. You may be subjected to high interest rates or other hidden costs. It’s important to make sure that the lender you approach is NCA compliant and registered with the NCR.
Banks will require you to be able to prove that any judgements against you have been paid in full.
In some cases, a deposit of as much as 50% will be required and you may need a third party to act as surety.
Being blacklisted does not mean that all financial institutions will view you that way. It is possible to obtain credit from a different source.
Your best alternative would be to try to clear your credit record before attempting to get a home loan. You can use debt counselling tools for this process.