What is a Loan?
In finance, a loan is the transfer of money by one party to another with an agreement to pay it back. The recipient, or borrower, incurs a debt and is usually required to pay interest for the use of the money.
Where Can I Get a Loan With Bad Credit In South Africa?
List of direct lenders offering Bad credit loans
- EZI Finance. Loans up to R8,000.
- Mulah. Loans up to R4,000.
- SupaSmart Loans. Loans up to R200,000.
- Blink Finance. Loans up to R4,000
- EC Loans. Loans up to R120,000.
- uBank. Loans up to R180,000.
- Hoopla Loans. Loans up to R250,000.
- Square Finance. Loans up to R3,000,000
Can you get a loan with bad credit in South Africa?
This is a valid concern, but you shouldn’t let it stop you from applying altogether. Having a bad credit score can indeed reduce your chances of getting a personal loan. However, it’s not impossible. Several lenders will consider applications with less-than-perfect credit scores.
What is the minimum credit score to get a loan in South Africa?
The minimum credit score for a home loan in South Africa is around 640. A score of 600+ will give you a fair chance of home loan approval – although this may vary according to which bank you use.
A score of 670+ is considered an excellent credit score, significantly boosting your chances of home loan approval.
How to get a home loan with low credit score in South Africa?
The bank’s lending policy plays a role; some banks may be willing to approve low credit scores.
Your best bet is to apply to multiple banks, which you can do with the services of a home loan comparison service such as Ooba Home Loans. You can take steps to improve your credit score within a short period.