Loans for bad credit

Having a bad credit score means that you don’t really have a good reputation when it comes to repaying your credit and previous loans. This means that you will not easily get a loan for an emergency.

The good news is that there are loans for bad credit. Meaning that even if you have a bad credit score, you will be able to get an approved loan. You just need to know where to look for a lender that is willing to give you a loan, even with bad credit. This is everything you need to know about loans for bad credit.

Amount 300 - 4500 R
Interest from 1 %
Loan term 5 days - 35 days

If you will get the loan of R300 with the term of 5 days, your totally payment would be R364.25. The fee is R64.25

Amount 500 - 8000 R
Interest from 27 %
Loan term 30 days - 3 months

If you will get the loan of R500 with the term of 1 month, your totally payment would be R674. The fee is R174.

Amount 500 - 40000 R
Interest from 5 %
Loan term 30 days - 12 months

If you will get the loan of R1.000 with the term of 12 months, your totally payment would be R2.160. The fee is R1.160.

Amount 100 - 4700 R
Interest from 38 %
Loan term 7 days - 28 days

If you will get the loan of R100 with the term of 7 days, your totally payment would be R189.36. The fee is R89.36.

Amount 1000 - 250000 R
Interest from 20 %
Loan term 6 months - 7 years

If you will get the loan of R1.000 with the term of 6 months, your totally payment would be R1.765.5. The fee is R765.5.

FNB
Amount 1000 - 300000 R
Interest from 13 %
Loan term 30 days - 5 years

If you will get the loan of R10.000 with the term of 12 months, your totally payment would be R12.672. The fee is R2.672.

Amount 1000 - 5000 R
Interest from 3 %
Loan term 30 days - 6 months

If you will get the loan of R2.000 with the term of 6 months, your totally payment would be R2.957.32. The fee is R957.32.

Amount 2000 - 75000 R
Interest from 10 %
Loan term 12 months - 6 years

If you will get the loan of R2.000 with the term of 12 months, your totally payment would be R229. The fee is R2.229.

Amount 100 - 250000 R
Interest from 28 %
Loan term 60 days - 5 years

For the purpose of providing an example of the rates and terms, if you borrow R15,000 over 15 months at a fixed rate of 28% per annum, with an admin fee of R68.40 per month as well as an initiation fee of R1,197 the charges would amount to a representative rate of 68% APR (fixed). The total amount repayable would be R22,717.

RCS
Amount 2000 - 250000 R
Interest from 15 %
Loan term 12 months - 5 years

Loan amount of R7,500 borrowed for 24 months. Annual Interest Rate: 27.75%. Initiation fee (charged upfront): R936. Monthly service fee: R69 Total Amount payable: R13 338. Monthly instalment amount: R556.

Faq

Is it a good idea to get a bad credit loan?

Yes, it can be a good idea if this is an emergency and you need cash immediately.

What are the main requirements for getting a bad credit loan?

You need to be over the age of 18. Have a valid ID, a permanent job, and proof of salary for the last three months. You also need to have a minimum salary of R5 000 per month.

Are the financial services do credit checks when you apply for a bad credit loan?

No, most of the financial services don’t do a credit check when you apply for a bad credit loan. However, they are making sure that you can afford the loan. They are going to check your bank statements for affordability.

What is a bad credit loan?

A bad credit loan is also known as 500 credit score loans south Africa. Where you can get an approved loan, even when you have a credit score of just 500.

Bad credit means that you don’t have a good track record with repaying credit, loans, and other bills. Making you a higher risk to lenders. Some lenders are willing to give out loans to people with bad credit scores, but then you are going to pay high-interest rates.


Qualifying for a bad credit loan

There are a couple of things that you need to be able to qualify for a bad credit loan. Criteria that you need to meet. This is important to make sure that you meet all the criteria because you have a bad credit score.

Firstly, you need to be above the age of 18 years. You will need to have a valid South African ID and a bank account. Proof of residence and proof of salary is also essential. You will need to have a permanent job for at least 6 months before you can apply for a bad credit loan. You also need to show them that you are able to afford the repayment of the loan.


Risks involved in bad credit loans

There are some risks involved in applying and getting bad credit loans. Especially if you are applying at lenders that aren’t registered to the NCR. You will have a risk to use bad credit lenders that aren’t legit and that can increase the interest rate without your knowledge.

You should also know that with most of the bad credit loan services, you are going to pay high-interest rates. Much higher than when you didn’t have a bad credit score. Another thing that you need to consider is the fact that with applying for loans when you have a bad credit score, it is going to have a negative impact on your overall score. Meaning that your credit score will only get lower.


The best bad credit loans you can apply for

When you are looking for a bad credit loan, or 500 credit score loans South Africa, then you can make use of these bad credit lenders. They are the best three lenders that you can use for loans if you have a bad credit score. These are everything you need to know about them.

Mulah

If you are looking for a short-term loan for bad credit, then you can consider Mulah for sure. They are one of the best lenders for bad credit loans. They are offering loans from R500 to R4 000 and can be repaid between 1 to 30 days. This is a monthly loan. Their interest rate is really high at 38% and you are going to pay some extra fees as well. Making repaying a lot more than what you were lending. And, you need to be over the age of 21 before you can apply for a loan with them.

Dialdirect

One of the great things about Dialdirect is that they are more a medium-term lender. You can repay the loan in 12 to 60 months. It takes 24 hours to get approval and to get the money paid into your account, but overall this is a great bad credit loan service. You can lend an amount between R1 000 and R250 000, depending on what you can afford. Interest starts at 27,75%. Also a bit high, but not as high as with Mulah financial services.

Wonga loans

Another short-term loan that is ideal for bad credit loans. They can give out loans up to R4 000. Repayment can go from 4 days to 6 months. The great thing about them is that they can process the loan within 15 minutes. You will get an answer almost immediately and payment is done within the hour. Interest is also not as high as with other bad credit loans. The interest with Wonga is 18,6%. Some additional fees are known as handling fees that you need to pay extra.


Conclusion

Bad credit loans or 500 credit score loans south Africa is harder to get than getting a normal loan. However, if you know where you can get this type of loan, it will be a lot easier. The most important thing that you should always remember, is to make sure that you can afford the repayment. Even if they don’t do a credit check. And, you need to remember that with bad credit loans, interest rates are extremely high.



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