Do you want to avoid facing rejection for loan approval with the credit check process? Then, Payday loans in South Africa with no credit check can be the perfect option for you at MoneyStar with some trustable lenders.
You can get an instant approval for funds in minutes with no hassle of banking and paperwork formalities. All types of short-term expenses can easily be tackled with these loans once you have got the loan approval.
What is a payday loan?
Payday loans are short-term unsecured loans with high-interest rates to pay on your next payday. You can quickly get the funds online with a simple application process. All unplanned expenses can quickly be taken under one roof during a cash shortage.
The loan amount you can get varies from lender to lender; still, you can get the funds up to R5000 to avoid sudden emergencies. These loans are the quick solution to instant money needs for borrowers who have tried all possible ways for money arrangements.
But that didn’t work for them in getting money to meet their needs due to the terms and conditions of traditional lenders. This time, you will feel proud of your last effort to get money the same day you applied.
What is a no credit check loan?
Lenders provide no credit check loans without looking into your credit history, and you can get quick approval for the loan if you don’t have a good credit score or are often rejected due to bad credit.
You can resort to a no-credit-check loan in such a case. Although, this is only possible to get loans with a credit check, which is commonly compulsory. But no credit check loan is a great option that improves chances of getting approval in a few minutes only.
You can borrow funds without putting yourself into any financial difficulties if you can afford these funds.
Why is a credit check important?
Your credit report has a record of your current and past debts, including how you are in terms of making payments on time. It is vital because it affects many areas of your financial life.
Any lending institution can be alert from helping you out further or not after checking the condition of your credit. In case there are pending debts on it which make you helpless to approach any financial services and your credit score is dropped down sometimes. You should also check your credit report occasionally to make sure everything is fine on the report.
How do I apply for no credit check payday loans in South Africa?
The application process for no credit check payday loans is straightforward to fill with less time consumption. In a few steps, you can complete the process and get loan approval instantly with the most trustable lenders at MoneyStar.
Apply online:
- Fill application: You have to complete a simple application with some of your banking and personal details. Make sure you mention all the authentic details the application has asked for.
- Get acceptance: Maintain your patience until your details are verified. You will get a loan contract once your loan approval is confirmed. You have to go through the terms and conditions and sign then send it back to your lender.
- Get funds: You can now get the money in your bank account at any hour after the formality.
What can you use a payday loans South Africa to buy?
Payday loans are commonly applied for emergencies and urgent needs in South Africa despite being expensive. Some sorts of expenses come in front to deal with them, no matter how your financial condition is.
Types of expenses:
- Flat tyre replacement: You can use the funds to replace a new flat tyre to reach your work on time.
- To fix boiler: Your boiler broke down through frequent use; you can repair it using these funds.
- Travelling cost: You can cover travelling expenses too.
- Birthday present: You can buy birthday presents for gifting with these funds.
Things to avoid which can negatively affect your credit rating
Certain things keep on affecting your credit score negatively. You may not have considered it before, but it’s time to think and do something about it. First, you should consider all these things that tarnish your credit image.
Here they are:
- Paying late: Remember when you make a late payment which is not considered reasonable in the eyes of financial institutions. It is one of the factors that lowers your credit rating, making you helpless to avail of any financial services ahead.
- Apply for multiple loans: Approaching multiple lenders to get financial services lead to damaging your FICO score. Each time they do a hard credit check, that negatively affects your credit score.
- Credit card account closing: They are opened when you are not paying for the accounts. This forces you to close them from a beneficial perspective, which is unsuitable for your credit score.
- Collection account: Neglecting your payment for a few months leaves dire consequences in the form of handing over your account to collection agencies. Their agents keep applying different methods to recover money.It also makes your credit bad ahead.
Are no credit check payday loans safe?
Since these types of loans are hazardous for lenders because they can do nothing if borrowers don’t make their loan payments; thus, you have to pay high-interest rates, which may lead to financial problems if you default on loan payments.
No one offers you such online funds without analyzing your credit history. You can find a few online lenders with whom to apply for these funds safely because you can’t get loans without checking your credit.
Top 10 ways to improve your credit score in South Africa
No doubt your credit score is an essential part of your financial life. If you want to avail financial services, then you have to have good credit. Otherwise, it takes less time to face rejections no matter who you are.
There are ten effective ways to improve your credit score in South Africa. You are required to follow these tactics to better your credit.
Ten 10 to improve your credit score:
- Pay bills on time: The best way to improve your credit is to pay off unpaid bills on time which will bring a positive response for you.
- Pay much less: you can also pay more than you usually pay less. You can get various types of benefits by doing so. Most are reducing your debt pressure and getting relief from pending debts quickly.
- Remove incorrect information: Removing incorrect information from your credit report can boost your credit. Keep your credit report accurate and up to date because, many times, wrong information gather there, and your credit score could be better.
- Reduce credit utilization: One of the factors your credit utilization plays a role in lowering your credit score. So you can reduce your credit utilization based on how much you are using out of how much you have available.
- Be an authorized user: Any of your family members who have a good credit score can add you to their account as an authorized user. This trick also can help you improve your FICO score ahead.
- Don’t close old accounts: You may have various old accounts that are unused. Still, it would help if you didn’t close them, which is also an excellent strategy for improving your credit score.
- Only apply for an abundance of loans: You should always only apply for one loan at a time. Lenders conduct a hard credit check each time you apply for a new loan, so only do that once you repay your first loan.
- Set up a budget: You should set up a budget to take financial decisions very carefully. You will have some ideas about your income, how much it is coming and where it is going.
- Use a secured credit card: Secured credit card is the best way for people who want to better their credit score. Usually, you can get guaranteed approval, but you must deposit a security fund which renders your credit limit. Making regular payments improves your credit gradually.
- Set up automatic payments: Set up an automatic payment, freeing you from worrying about making payments. The more you pay earlier, you make your payments, which positively impacts your credit score.
Payday Loans South Africa No Credit Check- Some FAQ’s.
Will my credit score be affected by applying for a payday loan without a credit check?
No, many lenders don’t report your credit score to credit agencies in South Africa. Thus, your credit score doesn’t impact until you stop making your loan payments on time.
How much can I borrow with a payday loan without a credit check?
The payday loan amount depends on several things, such as your credit score, income and the type of lender you have approached. Despite this, you can get a loan amount up to R5000 ranging from R100, to fix some unexpected expenses you have met.
Are payday loans without credit checks available to unemployed individuals?
Yes, unemployed borrowers can also take advantage of these loans, but they have to prove their ability to pay off their loans on time. They can get loans based on government benefits, which some lenders consider an income source.
What happens if I am unable to repay the payday loan on time?
You will have to pay more fees and costs for being unable to pay off your loan on time. Many lenders send your account to collection agencies for loss recovery. It leads to making you helpless for getting access to funds.
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.
