Updated for 2020
We all opt for good credit, if any credit at all. Unfortunately bad credit can occur, and sometimes not even as a result of poor financial management. If you are in the unfortunate category of a bad credit individual, do not despair as there is a solution to your dilemma. Please continue reading if you are interested in the solution…
Bad Credit Cash Loans South Africa
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What are bad credit cash loans?
Bad credit cash loans are loans that appeal to individuals that have bad credit, and cannot be approved by banking institutions for having a poor credit score. These bad credit cash loan providers provide customers with credit that have a bad credit rating. This is your ultimate solution in receiving credit from a legal institution, with very little fuss or hordes of paperwork.
Bad credit can be as a result of two main causes and you may fall into one of either group. The first cause being that the said person has acquired credit, and has not been able to pay within the payment period, and is either late or has a high utilization rate (generally expressed as a percentage). The utilization rate is the rate at which the credit is used, compared to your credit limits. Hence, the more the credit limit is reached, the more bad credit score is accumulated, even if you do not default on payments. As a result, a bad credit record can be formed, even if you pay your bills on time, or even before the time. However, paying off debt on time can help raise the credit score, but in the same token it can lowered if the credit limit is always reached( indicating a dependence for using credit).
The second cause of a bad credit record could be that the individual never had a credit record, in other words never purchased any item on credit, in which bad credit cash loans could still appeal to you.
There is a difference however between bad credit and being blacklisted, but one can lead to another and bad credit can eventually lead to blacklisting. Blacklisting in a broad spectrum is the denial of a certain person or entity to a privilege or service, thus blacklisting in a credit sense is the denial of a person to the service of acquiring credit.
Bad credit cash loans are mainly short-term cash loans and aim to provide customers with short- term loans for two reasons. First and foremost would be to cover unexpected expenses or emergencies (which a bank would not approve because of your current credit position). The second reason acts as redemption to paying off credit in an attempt to increase your credit rating.
How to get a bad credit cash loan
The requirements for taking out a bad credit cash loan are very minimal and are as follows for South Africa:
• The prospective lender must be a South African citizen( Identification document is needed)
• The monthly income must be more than R1500( latest pay slip is required)
• 3 Month bank statement
• Bank account details to receive the money
(Particular information may differ depending on different providers)
“I am listed on the ITC for having a bad credit record. Can I still apply for a bad credit cash loan?” The answer to that is yes, as your application might still get approved. You will be notified within working hours if your application has been approved, and the money will be transferred within 24 hours for the latest.
However some bad credit providers either operate online or have a physical address at which the final signature is signed by the customer on site and the cash is collected by the customer after the paperwork has been signed and approved. Legitimate bad credit cash loan providers have partnerships with the National Lending Partners NCR (National Credit Regulator), which is not a direct lender, but instead a nationally registered group of lending partners to which your application is sent for approval. Therefore your application is sent through a network of possible registered lenders, ensuring that your application can have a competitive chance for approval.
Every bad credit cash loan provider offers products tailored to your financial needs, from small amounts over a small period of time, to larger amounts over 6-12 months or even longer, with varying interest rates.