List Of payday loans for low credit scores South Africa
Accessing Loans with a Low Credit Score in South Africa

Having a low credit score can make it challenging to qualify for affordable financing from traditional banks and lenders in South Africa. However, there are still many options worth exploring if you need access to cash but have less-than-perfect credit.

This comprehensive guide covers online lenders, payday loans, peer-to-peer lending, specialized bad credit lenders, credit builder products, and even alternative financing methods for those with low credit scores.

List Of payday loans for low credit score south africa

Also See:

List Of fast online payday loans in South Africa

List of Payday Loans South Africa bad credit

List Of payday loans for low credit scores South Africa

List Of small payday loans online no credit check

Understanding Credit Scores

First, let’s review what makes up your credit score and why it’s so important for accessing loans.

Your credit score is a three-digit number generally ranging from 0-999. It’s calculated based on the information in your credit report, compiled by bureaus like Experian and TransUnion.

Lenders use your credit score to evaluate your creditworthiness and determine the risk if they were to lend money to you. The higher the score, the better your financial habits are perceived to be.

Some key factors that influence your score:

  • Payment history – Have you consistently paid accounts on time? Late or missed payments lower your score.
  • Credit utilization – This measures how much of your available credit you are using at one time. High balances can negatively impact your rating.
  • Credit history – The longer positive history you have, the better. New credit accounts lower your average age which decreases scores.
  • Hard inquiries – Too many applications for new credit in a short period can indicate high risk.
  • Credit mix – Having different types of credit (credit cards, loans, etc) demonstrates responsible management.

Now let’s explore loan options accessible with low credit scores:

Online Lending Platforms

A simple way to compare multiple loan offers is to use an online lending platform or comparison site. These allow you to complete one application to receive quotes from many potential lenders.

Creditum – allows you to compare loan offers from R500 up to R250,000 from their panel of lenders after submitting one quick form. Interest rates can start around 20% APR depending on your individual situation.

Just Finance – provides tailored quotes ranging from R500 to R150,000 through their short-term lending partners after a single application. There is no obligation to accept offers.

Cash Lady -matches applicants with lenders offering personalized loan options ranging from R500 to R150,000 after completing one online form.

The main benefit of using an online lending platform is the ability to easily compare multiple loan offers side-by-side.

Payday Lenders

Payday loans provide fast access to small amounts of cash before your next paycheck. However, they come with very high fees and interest rates. Only use as an absolute last resort for urgent needs, and repay quickly.

Fat Cat Loans – partners with lenders offering payday loans up to R8,000 with minimal credit checks required. Provide income, ID, address and bank statement proof. Ensure your next pay date covers the repayment.

Cash Crusaders – Major pawnbroker offers online and in-store payday loans ranging from R500 to R8,000 with 1-6 month terms. Apply online or visit a local branch. Expect fees around 5-30% monthly.

No Credit Check Loan Providers

Some online lenders advertise personal loans without formal credit checks. While they won’t perform hard credit inquiries, they still vet identity, income, and repayment ability. Interest rates are higher with these types of loans due to the increased risk.

Wonga – offers 1-6 month loans from R150 to R6,000 without credit bureau checks. Provide valid ID, income and bank details. Rates start around 5% per month. Only borrow what you need.

Lime24 – approves loans up to R10,000 with minimal credit screening. Valid ID, income and a bank account are required. Interest is around 20% APA for their 1-24 month loan terms.

CashFlash – offers up to R15,000 without intensive credit vetting, but requires ID, income, and bank statement proof. Ensure repayment fits your budget.

Bad Credit Loan Providers

Some lenders specialize in lending to those with poor credit histories. They may offer more flexibility compared to banks but charge higher interest rates due to the increased risk.

Money Loans – works with borrowers who have adverse credit histories. Provide income and residence proof. Loans up to R150,000 but expect interest around 30% APR.

Express Finance – advertises “bad credit OK” personal loans up to R250,000. Still requires ID, income and residence proof. Rates are high so only borrow essential amounts.

If using a specialized bad credit lender, scrutinize terms closely and limit borrowing only to critical needs that align with your budget and capabilities.

Peer-to-Peer Lending

Peer-to-peer lending connects individual borrowers directly with investors willing to fund loans instead of going through a bank. This model can provide more reasonable rates and flexible qualifications for those with low credit.

RainFin – allows you to create a loan listing outlining your needs/terms for investors to review and fund. This facilitates lending for those overlooked by banks.

Lulalend – matches borrowers and investors directly through their online P2P lending marketplace. They promote social responsibility by funding overlooked individuals who need access to affordable credit.

Credit Builder Loans

Credit builder loans help consumers with limited credit history establish and build a positive payment profile. They are essentially secured personal loans backed by your own money.

Here’s how they work:

  1. You provide an upfront cash deposit that the lender holds as collateral. This secures the loan if you default.
  2. The lender issues you a loan equal to your deposit amount. You are borrowing against your own funds.
  3. Make monthly payments over 6-24 months to repay the loan on time.
  4. With each on-time payment, you build a positive credit history and improve your score.
  5. Once the full loan balance is repaid, you get your complete deposit amount back.

When used properly, credit builder loans can significantly strengthen your credit profile for accessing more affordable future financing options. Just be sure to make consistent on-time payments to get the full benefits.

Some lenders offering credit builder loans in South Africa include:

Alternative Financing Options

If you’ve been turned down by traditional lenders, consider these alternative personal loan options:

Borrow from family/friends – Avoid credit checks and interest by borrowing from relatives. Have a formal repayment agreement.

Auto asset financing – Use your paid-off car as collateral for a loan from companies like NorthStarFinance. More flexible requirements than banks.

Payday advances – Some employers provide pay advances allowing you to borrow against future pay. Repayments are taken from your salary.

Pawnbrokers – Lenders like CashCrusaders offer loans secured by valuables like jewelry to avoid credit checks.

Crowdfunding – If facing financial hardship, consider creating a crowdfunding campaign through a site like BackaBuddy to raise needed funds.


Having a low credit score in South Africa can make accessing affordable financing more difficult but not impossible. Be sure to evaluate all options carefully, borrow only essential amounts, and use any loans responsibly to avoid spiraling into deeper debt. Rebuilding your credit profile over time remains key for unlocking better rates.


By QueenB

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