A Guide to Loans for No Credit – What to Know

December 19, 2019

Thanks to the help of modern technology and the world wide web, the process of applying for a loan has grown considerably simpler in the last few years. Instead of rushing to the bank or a lender’s office to avail of financial assistance, today’s South African borrowers can now undergo five-minute loan applications with a few clicks and keystrokes. 

With a quick search on Google, any prospective borrower can immediately get a push in the right direction towards any type of financial assistance in South Africa that can work best for them. It is worth noting that the ease in taking a loan out nowadays does not only affect the application process, but it also makes the experience of using the loan itself much easier. 

Now, it may seem a bit ridiculous to think about the experience of having and using a loan becoming much easier—after all, there’s nothing easy about dealing with debt, right? Fortunately, having a hassle-free debt experience with taking a loan out these days has become a common reality that can be availed of from most lenders, thanks to one particular option: loans for no credit.

What are loans for no credit?

At first, the mere mention of a loan with “no credit” may come off as an oxymoron that seems much more of a practical joke than something legitimate. Fortunately, loans for no credit are a real option that can take out the risk of having a terrible credit score. 

Not to be confused with a bad credit loan, loans for no credit provide essential and immediate financial assistance to anyone who needs it but doesn’t have the necessary credit score needed in standard loan applications. This type of loan is tailored to serve the following types of borrowers:

  1. Borrowers with no credit history, whatsoever
  2. Borrowers with immensely poor credit history and low credit scores
  3. Borrowers who want to build their credit

What can you get out of a loan for no credit?

Loans for no credit have become the most sought-after loan options on the market today because they offer a sort of financial “safe space.” Through the use of a loan for no credit, borrowers of all credit scores can apply and receive financial assistance for any emergency with no risk of maiming their credit history at all. 

What most people don’t know about loans for no credit, however, is that they can also be used in a variety of ways, aside from not incurring a dent on their credit history. To better understand how you can exactly make the most out of a loan for no credit, here are the two applications to keep in mind: 

Loans for no credit application #1: An avenue for forming great borrowing habits

The best part about getting a loan for no credit is that anyone can use it as a training ground to learn the do’s and don’ts of borrowing money—all while effectively reinforcing self-control. If you’re a loan newbie that’s looking to take on bigger loan principals but aren’t so keen on dealing with the pitfalls of a poor credit score, then feel free to use a loan for no credit as practice.

Loans for no credit application #2: Building up credit for bigger purchases

On average, a borrower with poor credit will end up paying over 11.5 per cent on monthly interest on an R2,000,000 home loan or aR250,000 car loan. It just goes to show how important it is to build your credit. With the help of a loan for no credit, you slowly build up a good credit history and score with easy payment schemes until you end up in the high-700s before you take out a loan for the dream house you’ve always wanted. 

Final words

Loans for no credit have been providing invaluable opportunities for South Africans to achieve financial stability without having to go through the rigorous process of meeting high credit standards. With the help of this type of loan, you can overturn your credit predicament in a more efficient and beneficial fashion.

If you are looking for bad credit loans in South Africa, get in touch with us today! We’re happy to help.