Do you know that approximately 37% of South African formal borrowers have an impaired credit score? Meaning these people are considered blaclisted and struggling to get credit from traditional banks, because they are considered high-risk borrowers.
MoneyStar understand these challenges and provides solutions. We help blacklisted people find the best payday loans for them. We have outlined all the crucial points related to blacklisted loan options, so you can make informed financial decisions.
Our large network of lenders means you don’t have to search around. To make informed decisions, learn about the requirements and how they work through our resources. If you are searching for Payday loans for blacklisted, you are on the right website.
What does blacklisting mean?
When you have been denied credit due to a poor credit record, it means credit providers have reported negative information about your payment history to credit bureaus like TransUnion and Experian. The negative information on your credit profile can be from various things, like missed or late payments, defaults on loans, court judgments for unpaid debt, or any history of returned payments.
Many people find themselves in this situation due to unexpected financial hardships, job loss, or circumstances beyond their control. Being blacklisted doesn’t mean that you’re banned from credit for a lifetime; it represents a warning flag to lenders that you’re a financial risk.
What is a blacklisted loan in South Africa?
Backlisted loans are specifically designed for people with a poor credit score or negative entries on their credit report. It represents that being blacklisted doesn’t mean that you are entirely banned from credit. These loans are mostly offered by online direct lenders with a high cost of borrowing and shorter repayment terms.
Can I Get Payday Loans If I am Blacklisted?
Yes, you can get Payday loans for blacklisted in South Africa, even if you have a poor credit score. It is difficult but possible because direct lenders don’t primarily focus on your credit score. Instead, they focus more on your current employment, income, and other assets. Which means, if you can afford the repayments, you will be able to secure loans without credit check.
How do payday loans for blacklisted individuals work?
Before applying for online payday loans, you should clearly understand how they work. The working of this loan for the blacklisted follows these general steps.
Application Phase: In the first phase, you complete an online application form by providing your personal details and the required amount. These applications only take around 10-15 minutes.
Credit Assessment: In this phase, payday lenders review the application and do an affordability check to make their final decisions. Since you are blacklisted, they primarily focus on your income, assets, and ongoing debts.
Loan Disbursement: Upon approval, the lender credits money directly into the borrower’s bank account on the same day.
Repayments: After securing the amount, the repayments are made on the borrower’s next paycheck, through the direct debit method.
Are payday loans in South Africa a good idea for the blacklisted?
Payday loans for the blacklisted in South Africa are a good option if they are in a genuine emergency, like needing money for the medical bills of your child or for an urgent business tour. This is because people with negative credit scores can’t get instant cash loans through other traditional options.
Who qualifies for paperless payday loans if you are blacklisted?
To qualify for a paperless payday loan, you would have to meet these key criteria:
- A proof of income, such as a salary payslip or bank statements of the last 3 months.
- Valid South African ID card
- Age of over 18 years
- An active phone number and bank account.
How to apply for an online payday loan for blacklisted?
We have condensed the whole application process into just these 3 easy steps:
Apply:
Complete a fast and simple form on MoneyStar, and find out about your eligibility through a soft search in just a few clicks without affecting your credit score.
Select:
Select your preferred loan option from the many available credit choices, then complete the full application directly through that lender’s website.
Receive:
You have already checked your eligibility through our website, which means you have a 98% possibility of approval, and you may receive the funds within 1 hour or the same day.
Do blacklisted loans affect your credit score?
Yes, blacklisted loans can affect your credit score, but the effect will depend on your actions after taking the loan. It will affect your credit score positively if you manage to make all payments on time. However, it can also lower your credit score if you make late payments or miss them entirely.
Can you get a payday loan for blacklisted with bad credit?
Yes, blacklisted individuals with a bad credit score can get a payday loan in South Africa. Your loan application can be accepted as long as you have a stable income source and enough disposable income to afford the repayments.
What are the pros and cons of payday loans for the blacklisted?
Pros
- Accessible to blacklisted people: One of the major advantages of payday loans is that they are also available to blacklisted people. This is useful because blacklisted people can’t get loans through traditional banks.
- Potential credit score improvements: Payday loans can increase your credit score and fix the problem of being blacklisted. You just have to make timely repayments of your loans.
- Paperless Process: Payday loans are applied for online and thus require minimal paperwork. This makes the whole process a lot faster and effortless.
Cons
- Stacked Up Charges: Lenders often charge various types of fees for the payday loans. These fees can stack up quickly and increase the overall cost of the loan.
- Limited credit amount: The amount available for payday loans for the blacklisted is generally small and is only ideal for short-term financing.
- Repayment Practice: When you take a payday loan, lenders get authorization from your bank account. This way, they can directly deduct money from your account, which can cause problems in your cash flow.
Payday Loans for Blacklisted- Some FAQ’s.
How do I check if I am blacklisted?
You can check that by reviewing your credit report, provided by credit bureaus like TransUnion, Experian, or ClearScore. Check for any negative listings in your credit report, such as late repayments, loan defaults, or court judgments.
Will I get my blacklisted payday loan quickly?
Yes, you will most likely get your payday loan within 24 hours upon approval because of completely online process.
Do I need a guarantor for a payday loan for blacklisted?
No, a guarantor is not mandatory for payday loans for blacklisted individuals, but having a guarantor will significantly increase the chances of your loan approval.
Do I need to offer security?
No, payday loans are unsecured and thus don’t require any security.
How much can I borrow?
A blacklisted individual in South Africa can borrow a maximum of around R5000 through payday loans. The approval amount depends on the credit score and repayment ability you mentioned in your loan application.
Using the MoneyStar, you may get from R100 to R35,000 in just 5 minutes.
Applying won’t affect your credit score
Micah Sedres
MoneyStar expert Micah strives to navigate finance niches like credit cards, loans, and mortgages easily. She helps hundreds of readers in credit building and provides money management tips. After regularly working for brands like Businesslive.co.za, she joined the MoneyStar.co.za team as a staff writer to develop credit product reviews and comprehensive guides mainly focused on credit scores and loan/card offers.
