Bad Credit Loans No Credit Check South Africa
The demand for Bad Credit Loans No Credit Check is on the rise among South African residents. The Covid-19 pandemic did a number on global trade in 2020, and the South African economy was badly hit at well. The most recent credit statistics published by Trans Union show that over 34% of South African citizens fall within the precarious “bad credit rating” bracket. Today, well over 10 million South Africans are likely to be turned down when they apply to traditional banks for credit facilities. Experts advise that if this situation is left unabated, millions of South Africans may slip further below the poverty line.
In this article, we have put together a comprehensive guide on how you can access personal loans with bad credit ratings. NoCreditCheckLoans is a revolutionary platform that connects you with direct lenders who grant urgent loans for bad credit.
What Are Loans for Bad Credit No Credit Check?
Loans for bad credit no credit check are a suite of credit facilities that are specifically tailored to the needs of two groups of people – those who have a poor rating on their credit reports and secondly, those who have no credit history at all.
In South Africa, your Credit Bureau score is calculated using a unique formula that objectively evaluates how well or poorly you pay your bills, how much debt you carry, and how all of that measures up when compared with other borrowers.
In a nutshell, your credit score is an aggregate figure that tells financial institutions how likely you are to repay your personal loans. It is directly linked to your borrowing history and your management of existing credit facilities.
Because a borrower’s performance on past and existing credit is such an important part of computing a credit score, people who have no borrowing history at all often have to settle for bad credit personal loans as well.
In South Africa, a citizen’s Credit Score can range from 0 to 999 or from poor to excellent. The credit score bands are defined thus;
- Excellent credit: 767 – 999.
- Good credit: 681 – 766.
- Favorable credit: 614 – 680.
- Average Credit: 583 – 613.
- Below Average Credit: 527 – 582.
- Unfavorable Credit: 487 – 526.
- Poor Credit: 0 – 486.
Individuals with ‘good’ credit scores between 767-582 are like to obtain loan facilities with relative ease. Conversely, the story is quite different for people whose credit ratings fall below 582. Such people may struggle to get a loan from traditional banks and other financial institutions, and even when they do, they will be charged significantly higher interest rates.
Bad credit loans are structured differently such that some of these normal steps and typical requirements are waived, to allow people with bad credit scores to access finance in their time of need.
People in dire financial situations often turn to bad credit loans to finance large purchases, emergency expenses, debt consolidation, and much more. Upon approval, the funds will be disbursed into your designated bank account in a lump sum.
So, if you currently have a poor credit rating all hope is not lost. There are many credit providers that are willing to extend bad credit personal loans to residents of South Africa.
In the next section, we shall describe all the steps you need to take to obtain a bad credit loan with guaranteed approval and no credit check required. Read on.
How to Get Loans for Bad Credit No Credit Check?
If you’re wondering how you can obtain loans for bad credit in South Africa, NoCreditCheckLoans is where you should be looking. The process is easy, seamless, and super fast. On our platform, you can easily apply for loans for bad credit online, have it approved and disbursed into your bank account all within 30 minutes to 24 hours. Just how cool is that.
If you fall within the” poor credit rating” category one thing for sure is that you’re not alone. And if you’ve been looking for ways to obtain loans for bad credit online, then you’ve come to just the right place. At NoCreditCheckLoans, we connect you with an array of lenders. They’re quick, secure and they also offer competitive interest rates.
However, before you fill in your application, there are certain steps that you need to take to get your urgent loans for bad credit approved and disbursed quickly.
So, are you ready to find out how you can get bad credit loans online? Well, let’s delve right into the details.
When you have a bad credit rating, getting a loan application approved can become quite a herculean task. Bad credit personal loans offer you a chance to repair your credit rating. So, when you find a bad credit loan option, you should carefully consider your loan amount and repayment term. It’s important to find a perfect balance between the two, to help you create a repayment structure that will suit your income profile.
STEP 1: Select your loan amount and loan term
By repaying your bad credit loan as due, you stand a chance to improve your credit rating over time.
NoCreditCheckLoans allows you to select amounts in multiples of 100 between R500 to R4,000. The effective interest varies depending on the lender that you choose. However, typically, same day loans terms attract relatively lesser interest charges.
STEP 2: Complete our application form
Asides from finding a lender, filing in wrong details on your loan application is another challenge that may prevent you from getting your bad credit loan approved.
After choosing your desired loan amount and repayment structure, the next step is to complete the online application form. On the application form you’ll be required to provide your salient details like your name, employment status, income range, and of course, your banking account details for the loan disbursement.
If you make crucial mistakes when completing your loan application forms, you may encounter some delays in the disbursement or even outright rejection. Hence, it is pertinent that you fill in your correct details at every step.
STEP 3: Wait 2 minutes for the decision
After you have completed the application form, the automated system will then process the details you have provided. After about 3 minutes you’ll get the verdict; “approved” or “declined” on your screen.
If your application is declined by the system, that’s not the end of the road. In most cases, you often be provided with other suitable loan options on the platform.
If your request for the bad credit personal loans is not approved on the platform, you can retry with a lesser loan amount or different loan tenure. The platform does not carry out a hard credit check in your application process. So, feel free to try again multiple times until you find suitable loans for bad credit. You can rest assured that the application won’t be hurting your credit score.
STEP 4: Connect with a lender if approved
After being approved you will be redirected to a lenders website and they will provide you with the official loan agreement. This is a legally binding agreement that outlines the terms of the loan transaction between you and the lender.
Once you have carefully read the document, append your signature and send it back electronically to the lender. Once you have completed this step, the direct lender is obliged to disburse the bad credit personal loan amount directly into the bank account you provided in your application form.
In South Africa, the bad credit loans disbursement process may take up to 24hrs. This depends largely on your bank and the payment method chosen.
Basic Eligibility Criteria
For anyone to be eligible to obtain a loan for bad credit in South Africa, the basic requirements are generally the same across all states and provinces. However, it is important to note the secondary terms and conditions may vary depending on the lender and the loan type. Here are the basic criteria that you must fulfil to be able to obtain loans for bad credit no credit check in South Africa;
- The applicant must be 18 years and older.
- The applicant must be a legal resident of South Africa
- Proof of monthly income and/or employment status.
- A valid email address and phone number(s).
- A valid Identity Card (ID card) issued and recognized by the South African government, such as a copy of your driver’s license, or international passport.
Advantages of Urgent Loans for Bad Credit
Contrary to popular opinion, urgent loans for bad credit actually do have a lot of advantages. Here are some of them;
· Emergency Solutions
Bad credit loans may come in handy for emergency situations to help low-income people get through hard times despite their credit history.
· Credit Score Repair
If you have a poor credit rating, it is not the end of the world. Bad credit loans can help you rebuild your credit score. Bad credit personal loans are easier to obtain, and their repayment terms are far more flexible than other loan types. Consequently, you will have a chance to increase your credit score over time by repaying your bad credit loans as due.
· Access to Quick Funds
Because hard credit checks are not involved, the application process is streamlined and disbursement is fast. Therefore, it offers an avenue for people to access urgent loans for bad credit to fulfil emergency financial obligations.
· Debt Consolidation
People who are heavily indebted can use the bad credit loans that they obtain to offset part of their existing debt. This eases the financial pressure on them at that particular time and provides a much-needed morale boost in their quest for financial rejuvenation.
Features of Loans for Bad Credit No Credit Check
· No hard credit checks are required
Most bad credit personal loans applications have a unique evaluation process that is largely based on the ability of the borrower to repay.
In South Africa and many other countries, each time any financial institution requests a hard credit check, the potential borrower would have to pay some fees and also lose some credit score points. For people who already have bad credit, this can be damaging.
Thankfully, when you apply for loans for bad credit online, lenders often do not consider the credit history of borrowers as crucial. Instead of a credit rating benchmark, most direct lenders only set a minimum monthly earning requirement.
This means that as a potential borrower, you do not have to go through the costly and complicated process of a hard credit check.
· Medium to long-term Loan Tenure
Depending on the policy of your chosen direct lender, bad credit loans usually come with a repayment tenure ranging between 3 months to 48 months. In most cases, the higher the loan amount requested, the longer your repayment period is.
· Flexible Repayment Plans
Unlike other types of loan facilities, loans for bad credit in South Africa come with flexible repayment plans. While products like payday loans are often structured to be repaid weekly, monthly or whenever the borrower receives their next paycheck, bad credit personal loans are more flexible. Borrowers can choose to pay back in small installments at convenient intervals. This flexible structure helps people to spread out their loan repayment obligations over a longer period. Some lenders may even offer you the option to make a lump-sum repayment of principal and accrued interest at the end of the loan duration. The onus is on you to choose a plan that best suits your current financial situation.
If you reside in South Africa, and you are looking for where to get a bad credit loan online, NoCreditCheckLoans is a great option for you. It is a legitimate online credit broker that offers assistance to people with bad credit ratings who wish to apply for personal loans. This digital platform partners with a variety of direct lenders to provide urgent bad credit loan options in amounts ranging from R500 to R4,000.
How much money can I borrow with bad credit?
If you have bad credit, South African credit brokers and direct Lenders typically evaluate your borrowing limit based on your monthly income. Generally, you can expect to receive loan limits between R400 to R5000. Keep in mind that the amount you’re offered initially may increase over time if you make repayments when due and improve your credit score.
Do I need a bank account to get a bad credit personal loan?
Yes, you do. Most direct lenders that offer guaranteed approval loans in South Africa do so via online portals. During the application process, you will be asked to provide your bank account details. And after approval, the loan is immediately disbursed directly into the bank account via online transfer or direct deposit.
What Are Bad Credit Loans?
Bad credit loans are special credit facilities that are offered to individuals with significantly low or poor credit scores. In South Africa, a citizen’s TransUnion Consumer Credit Score is below 527, such a person automatically falls in the unfavourable/poor credit category.
While individuals with credit scores between 767-527 may quickly obtain credit facilities at favourable terms. Conversely, sub-prime borrowers with bad credit or no credit history may struggle to get a loan application approved by banks. And even when they do, they will be charged significantly higher interest rates.
Can I get a loan with bad credit and no income?
Yes. Whether you are unemployed unexpectedly or by choice (in the case of retirement), there are a number of credit brokers and direct lenders who will consider extending you a loan. All you need to do is show evidence of potential monthly income. This may be in form of transfer payments, allowances, pension, or other sources of income.