BFS Loans (Barko)
Barko Loans, founded in 1996, is a renowned microfinance firm in South Africa.
They provide professionally employed and productive South Africans with ethical and innovative lending alternatives.
The target market for Barko Loans is made up of millions of low-income, nominally employed South Africans, including government employees, mining industry employees, and private sector workers.
Barko Loans has experienced remarkable growth over the years as a result of its creative service offerings.
While their client service experience has grown to suit all of our clients’ expectations, we continue to strive to develop and better serve our consumers.
By empowering communities, Barko Loans hopes to make a difference in the social and economic context in which we operate.
BFS Loans For Blacklisted
If I have bad credit, can I apply for BFS loans for blacklisted?
Like with most lenders, Barko Loans supports responsible lending, if you have bad credit and you are looking for BFS loans for blacklisted, chance that you will qualify are very low.
So, if you are blacklisted you won’t qualify for Barko loans.
Although you might not qualify for a loan with them, there are other lenders who can assist people looking for blacklisted loans with stick terms and conditions though.
Barko Loans Application Requirements
| Proof of permanent employment |
| Proof of residence |
| A certified copy of your South African ID |
| Your most recent bank statements |
BFS Loans Contact Details
We have listed all the Barko branches and important details in the following post, click here.
For those who are looking for BFS loans for blacklisted, below pointers will help you in the future to help you build healthy credit score that will allow you to qualify for bond and car loans.
What are Bad Credit Causes?
A lender might refuse to lend to a potential borrower for a variety of reasons, including negative credit.
Bad credit refers to a person’s history of missed bill and loan payments, as well as the chance that they may miss or default on payments in the future.
When a potential borrower has a poor credit history, getting authorized for loans, credit cards, or even renting an apartment might be challenging.
The lender or creditor submits information to the credit agencies when an individual makes late payments or fails to make payments at all.
The information is contained in the person’s credit report, which is used by lenders and other creditors to determine whether or not to give credit to potential borrowers.
Based on their payment history with creditors, a corporate borrower might potentially have terrible credit.
Five Main Causes of Bad Credit
Bad credit is caused by several key factors, as listed below, which will definitely deny you BFS loans for blacklisted.
1. Collection Accounts
When creditors are unable to collect payments from a borrower, they might enlist the help of third parties to help them.
Before or after charging off their account, most creditors hire or sell their outstanding debt to collection firms.
The information is recorded in the credit report when overdue accounts are referred to collections.
Creditors will be hesitant to extend credit to a borrower who has a poor collection history until such information is corrected.
2. Late Payments
The payment history of a person accounts for 35% of their credit score.
The creditor may have submitted the information to the credit agencies if you have missed payments for more than a month.
Your credit report will also contain the information.
Your credit score will be affected if you repeatedly miss payments to lenders, credit card agencies, or utility companies.
If your terrible credit is not restored, your credit score may be classed as “poor” or “very poor,” lowering your chances of being accepted for a loan.
3. Bankruptcy Filing
If a person or business is unable to pay their obligations, they may be obliged to file for bankruptcy in order to obtain legal protection.
Filing for bankruptcy is a drastic step that has the greatest impact on a company’s credit score.
When a borrower declares bankruptcy, the information is stored in the credit report and remains there for seven years.
Because bankruptcy proceedings are complicated, most lenders are hesitant to lend to borrowers who have a history of bankruptcies or court challenges involving their financial condition.
4. Charge-offs
The creditor will charge off an account if it has been late for an extended period of time.
A charge-off occurs when a creditor has given up trying to collect payments from a borrower, and it results in a negative record on the credit report.
The account holder will no longer be able to make purchases using the account after it has been charged off.
When a charge-off happens, the borrower still pays the creditor the charge-off sum.
5. Charge-offs
The credit score will suffer as a result of the unpaid charge-off.
The information about a charged-off account is submitted to the credit bureaus.
Since the account went overdue, the charge-off information remains on the credit report for seven years.
6. Defaulting on Loans
The same rules apply to loan defaults as they do to account charge-offs.
The account will be declared as in default if you have missed many payments and have not paid by the end of the month.
The lender will report the information to the credit agencies, resulting in a negative impact on the borrower’s credit history.
When potential lenders see the data, they will see the borrower as a high-risk borrower who is unlikely to pay back loans.
