What you need to know about low or bad credit?
The term “bad credit” is somewhat vague, so we will try and make it clear for you. Having less than perfect credit or bad credit doesn't always mean that you can't qualify for a loan. If you have been turned down by a lender, for bad credit, it could simply mean your score didn't meet their minimum requirements.
So let us get into what bad credit really means and how we can help you improve your current credit standing.
Two main explanations for low or bad credit scores.
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The First:
You have been an active participant in the credit market. But, due to unforeseen circumstances such as a job loss or financial difficulties, you may have fallen behind on your accounts and missed payments. Although there are no judgements against you, your credit score has significantly decreased, making it difficult to successfully apply for credit.
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The Second:
You have never had credit before. This could be due to only started earning a salary, or because you have always paid for things in cash and never needed to take out credit. In this case, lenders may see you as a higher risk because they have no information to go on when assessing your creditworthiness.
Having no credit or poor credit is a major stumbling block to getting a loan because you regarded as a high-risk customer who might default and leave the credit provider struggling to collect the loan repayment.
A widely, well known, truth regarding credit
Only once your credit score is exceptional, you will fit the standard lending guidelines that banks have to follow. However, many clients from South Africa apply for loans every month, even if their credit scores are not exceptional and we recommend, that you rather try and improve your credit standing before applying as this will give you a better chance to qualify.
When you apply for a loan, lenders will check your credit score and affordability and other business rules that they have in place to protect you from taking on credit irresponsibly.
Is it possible to get loans for bad credit?
In life, nobody likes to be judged. When it comes to loans and credit, credit providers will look into your credit score when you apply for credit, for them to make an informed decision about whether or not to lend to you.
Therefor, we cannot guarantee loan approval, as each application must undergo a series of checks. As a responsible lender and broker, we need to ensure that every customer can afford to repay their loan without ending up in a credit spiral.
While a bad credit loan is not guaranteed, we work with reputable lenders who consider poor and adverse credit histories. We believe we are the best company to help you secure an affordable loan offer today, and our service is completely free of charge.
What you need to know about loans application procedures
- We cannot assist you if you are under debt review, administration or sequestration
- Your loan application will be subject to a Credit Check, and Affordability assessment as required by the NCR (National Credit Regulator)
- You need to be permanently employed, and between the ages of 18 and 63.
- You must have a valid South African bank account in your name
- Our loans applications are designed for speed, with funds potentially transferred to your account within hours of approval.
- Please have a look at our Basic Criteria and Required Documents before applying for a loan with us.
- If you are a self-employed Business owner (Self-Employed Business owners. Read Here)
How can I apply for a bad credit loan
Complete our application and let us help you take the guessing out of whether you will qualify or not.
Remember - We can assist you in obtaining a loan. Most of our service providers are willing to look past some of your mistakes. While everybody can apply with us and qualify, not everybody will be approved depending on your credit status and affordability and employment status. Your loan application can be unsuccessful because of your previous credit behaviour.
Applying for a loan with us will not cost you anything, it is free, so even if you are unsuccessful the first time, try again within a month or so, as conditions change and applying next month could get you a better answer.
What you need to get an online bad credit loan?
- South African ID book or ID Smart Card
- Latest Payslip
- Latest 3 month Internet Bank statements
Bad Credit FAQ
Do you offer loans for emergencies?
Yes, Mr Cash Loans provides emergency loans for those who need quick financial assistance for situations like plumbing issues, car repairs, financial emergencies, and more.
Our loans are designed for speed, featuring a fully online application process with a loan amount paid to your bank account within hours of approval.
Emergencies can happen at any given time. Many people have a tough time getting a loan approved from banks as they have a bad credit history. Our lenders specialize in assisting people like you.
Can I apply if I am under Debt Review / Debt Restructuring?
No, you won't qualify. First complete your debt review and once you have been re-instated you will be able to apply.
Do you do credit checks?
It is required by the National Credit Regulator, for registered credit providers to do credit checks. So, yes, all our lending partners and ourselves will comply and do credit checks so that we can make an informed decision before any loan is granted.
What is a credit rating or credit score?
A credit rating or score, is a three digit number that estimates your ability to repay credit, based on your credit history. Read more on credit scoring
Can I still apply with bad credit?
Your credit score plays an important role in your loan application, but it is not the only thing that matters. Our Lending partners will consider your overall credit health and affordability, to ensure that you can repay the loan comfortably.
Are there any upfront or hidden fees?
By law it is illegal for someone to charge you to apply for a loan. You should know if someone asks you for a upfront fee that it is most probably a scam. Registered Credit Providers won't charge you any fee to apply. However, if the loan is approved and disbursed to your bank account you will be responsible to repay the loan and cost of credit. More on the cost of credit
How do I get the loan application process started?
You can start out by completing our Online Application
Once you have completed the application, you will have an immediate initial answer. You can then decide if you want to continue or not by submitting the documents as requested. Required loan documents