When arranging instant money is unfavourable, payday loans without credit checks are left the only option in South Africa. You may also need a better credit score to approach financial services, but some online lenders are interested in helping you out despite that.
The best thing about some online lenders is you can get loan approval in minutes rather than waiting for half of your day. You can experience the simplicity of applying for such funds and getting them as quickly as possible.
What is a credit check?
A credit check is a process that lenders, banking institutions or service providers conduct to know your financial background. It helps them get access to your past existing debts, payment habits and several loans you haven’t paid yet.
Generally, lending institutions request a copy of your credit report from credit agencies in South Africa (TransUnion, Experian, XDS). Your credit report has the data of your credit history, revealing everything to the lending institutions.
Financial institutions can also know their risk level by looking at your credit history before they offer you any financial services like loans.
What are payday loans with no credit check in South Africa?
Payday loans in South Africa are short-term loans that help you with a fast funding solution to cover some unexpected expenses in South Africa before your next payday. It is also true you have to pay high-interest rates when you have used the funds, and it’s time to loan repayment.
Many lenders don’t perform credit checks to get funding assistance because they intend to remove you from financial problems. Yes, they are willing to know your ability for loan repayment on time.
These loans are for a short duration, so you must choose the loan amount accordingly because they are a little more expensive than conventional loans.
Difference between soft and hard credit check
There are two different types of credit checks such as soft credit checks and hard credit checks. Commonly lending institutions perform both credit checks depending on your payment-making habits.
Here are the differences between soft and hard credit checks that may or may not impact your credit score.
Soft credit check Vs hard credit check
- Soft credit check: Soft credit check is a check that doesn’t negatively impact your credit score. When lenders conduct a soft credit check, they don’t appear on consumer disclosures.
- Hard credit check: Hard credit check is performed when you apply for something precious like loans or other financial-related services. Whenever a hard credit inquiry appears on your credit report, it certainly has a negative result as it lowers your FICO score.
Can I get a payday loans without credit checks?
Yes, payday loans don’t require a credit check to get approval from some trustable lenders. Instead of focusing on your credit, lenders focus if you can pay off your loan on time, so you need to ensure income stability. All borrowers must have an income source before applying for these loans.
How do I check if I’m eligible for a no credit check payday loans?
Every lender has different criteria for payday loans with no credit check in South Africa, but you will have some basic requirements to meet the lending criteria of lenders. Check out the requirements you need to get ready to receive money.
Payday loan eligibility criteria:
- Age: Your minimum age is required to be 18 or older to match the lending criteria of lenders in your province.
- Address proof: You must provide your permanent residential address proof of South Africa.
- Income: You have to provide a source of income to pay off your loan on time.
- A bank account: You are required to have a bank account to receive funds after approval.
- Contact details: Your active contact details are also essential.
How can I apply?
The easiest and fastest way to apply for a payday loan is through online lenders to get instant decisions. You can save enough time with online lenders because you have to complete a simple and short application process.
The most straightforward process for everyone:
- Apply Online: You must complete a simple application form and enter vital banking and personal details without making mistakes.
- Sign loan contract: Wait until your details are verified; you will receive a loan contract after you are approved. You have to read the terms and conditions once before signing the contract.
- Get same-day funding: Once you have signed the loan contract and returned it to your lender. You can receive your money in less than 1 hour, not more than that.
What alternatives to payday loans with no credit checks are available in South Africa?
Some alternatives to payday loans also require no credit check in South Africa. You can also choose them during your cash shortage. Everyone can apply for payday loans with no hassle. But it would help if you tried some alternative options when you find small loan amounts a bit expensive to your pocket.
Best four payday loan alternatives in South Africa:
- Borrow from friends or family: Your friends or family can borrow you some money when you are in extreme need of cash. You need to talk to them about your current problem promising to pay off their money on time.
- Boost income: You can increase your income source so that you don’t need to take out any loan to meet your short-term needs. It can be one of the best alternatives to handle expenses during a money shortage.
- Pawn shop loans: Pawn shop loans are available in South Africa to get instant cash based on your valuables. It would help if you put any collateral to get the money against its value. But you may lose your thing if you don’t repay their loan on time.
- Apply for credit union loans: Credit unions in South Africa offer various financial services, and loans are also one of them. They also have easy lending criteria than traditional banks, so you can qualify for loans there too.
When payday loans for no credit check right for you?
Payday loans are the right fit for borrowers whenever they have an urgent need for quick cash. Also, if they can pay off their loan on time, these types of loans make sense for resorting. You can also consider applying for payday loans with no credit check when you have no other options for money arrangements and have bad or no credit score.
Payday Loans Without Credit Checks South Africa- Some FAQ’s.
Can I still get a payday loan with bad credit?
Yes, getting payday loans with your bad credit score is possible because many online lenders accept your poor FICO score to help you further. Due to poor credit, you must be ready to pay high-interest rates while repaying your loan.
How much can I borrow with a payday loan in South Africa?
Payday loans are short-term financial assistance, so you can choose the loan amount from R100 to R5000. These ranges are enough to meet your short-term emergencies during your cash shortage. So you have to spend that wisely.
How quickly can I receive funds with a payday loan without credit checks?
As soon as your loan application is approved, you can expect to get your funds in 24 hours, or this may take less than that. It also depends on how well you have completed the application process because any mistakes on the application may lead to loan disapproval too.
Are quick payday loans with no credit check more expensive than traditional loans?
Yes, payday loans are a little more expensive than other traditional loans because they are faster than other loans to get. Also, they are available for only a few weeks, so you make sure where you spend that.
What happens if I can only repay a payday loan with credit checks on time?
If you cannot pay off your loan on the due date of arrival, then interest rates will continue accruing as long as you don’t pay. Even many lenders send your account to debt collection for their loss recovery. Once this happens, you will have to deal with unwanted calls and messages for loan repayment.
Can payday loans without credit checks in South Africa improve my credit score?
No, payday loans are not reported to credit agencies in South Africa. So, there is no question of improving your credit score, but you can bring positive changes by making your loan payment on time in South Africa.
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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.
