PEP loans for blacklisted people are an easy way to get cash to cover emergencies and address other pressing financial needs. The application process is fast, and amounts range from R1,000 to R50,000. All you need to apply is a valid South African Identity Document, your latest bank statements or pay stubs, a functional bank account, and a phone number.
Key Takeaways
- You can apply in-branch, over the phone, or on the website,
- The service is backed by Capfin loans
- You can get money even if you have a bad credit score.
- Use the USSD *120*5566# to start the application process.
- You can also visit the website www.capfin.co.za for more instructions.
- The email for submitting your documents isinfo@capfin.co.za.
- To understand how this process works, you can read the terms and conditions at www.capfin.co.za/terms-conditions.
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What Does it Mean to be Blacklisted?
This means you are flagged by credit bureaus, informing lenders that you do not pay back your debts on time. This makes it difficult for you to borrow money and get other financial services unless you want PEP loans for blacklisted. Fortunately, if you change your money habits and start handling your finances better, your credit history will improve, and your profile will be removed from the blacklist.
Do I Qualify For a Loan if My Profile is Flagged by Credit Bureaus?
Borrowing money while you are on a blacklist can be pretty hard. Banks, in particular, will decline your application. Fortunately, it’s not entirely impossible.
Several lenders offer financial services to individuals struggling to get approval elsewhere. This is why it’s possible to get cash from PEP.
Financial organizations that offer this service know that your past is not clean. As such, you will find that the process doesn’t involve many steps and background checks.
The only thing a loan provider will want to prove when your profile is flagged by credit bureaus is if you have enough income to pay back the money they give you. Other than that, PEP loans for blacklisted are quite easy to get.
If you struggle to get this loan, you can also check other options here.
Eligibility Criteria
- All applicants must be over the age of 18.
- You should earn at least R2,000 monthly.
- The salary should reflect in a bank account that’s in your name.
- For small amounts, you can qualify if you have an income of R1,500;
- Absa account holders have a higher chance of approval.
How to Apply
If you want to submit an application, you should take your South African Identity document, three recent pay stubs ( you can also use bank statements), and your phone to a PEP store near you.
The attendant helping you will scan your documents and submit them to FICA services. Once that’s done, they will forward your application to Capfin.
At this stage, you must wait for the bank to contact you with further instructions.
Interest Rates and Fees
The maximum interest rate for PEP loans for blacklisted is 5% per month and 27.25% yearly. You can get payment terms of up to 12 months. The service also comes with a service fee of R69.00, charged monthly.
FAQ
Can you get a personal loan with a credit score of 550?
According to TransUnion South Africa, a score of 550 is below average. Generally, the higher your rating, the higher the chances of getting your application approved.
That means it will be harder to get a lender to give you money with a credit score of 550. Even if you get approved, your interest rate will be higher than if you had a favorable, good, or excellent profile.
How much money can you borrow with PEP loans for blacklisted?
The amount you can borrow with bad rating depends on your affordability. If your score is low, you’ll likely have lower borrowing limits to reduce the lender’s risk.
However, you may be allowed to borrow more in cases where you use an asset such as a house or car to secure the loan.
Still, it’s a good idea to borrow only what you can afford because defaulting will worsen your record.
How do you fix bad credit to get a better loan?
- Look for errors in your credit report and contact the applicable bureau to get them fixed.
- Pay off some of your debts to reduce the amount you owe. Focus on paying off high-interest debt first, such as payday debt and credit cards.
- If there are court judgments against you, ensure all your outstanding payments are fully settled.
- Continue to make all your payments on time to avoid late or missed payments.
- Avoid submitting too many loan applications in a short space of time.
Can you get Pep loans for Blacklisted With no credit check?
Only an irresponsible lender can provide you with a loan without looking at your profile, which is against the rules of the National Credit Act (NCA). According to the NCA, financial services providers must ensure that you can afford to pay back your borrowing money.
This is for your own good because it helps you avoid the trap of a vicious debt cycle. Therefore, it’s necessary for any service provider you approach to look at your profile and review your borrowing history.
Once the lender understands your financial behavior, they can determine whether you can afford the loan. This is what a responsible business must do to avoid penalties from the NCA.
Which loan company is best for bad credit?
Several companies will entertain applications from borrowers with less-than-stellar ratings. PEP is one of the best organizations to approach if you want cash to cover emergencies or pay bills. Their application process is easy and less stringent than other players in the industry.
Is there a risk in taking out a loan in South Africa when you are flagged by bureaus?
Yes, there’s always a risk regardless of the type of credit you are taking. Even with PEP loans for blacklisted, failure to keep up with payments can worsen your record. Apart from that, if you work with other lenders and take out money using collateral, you risk losing your valuables if you default.
What is the easiest type of loan to get with bad credit?
Payday, secured, and instant cash loans are the best if you have a poor rating. Lenders who offer these services already know that your score is poor, so you won’t have to go through a thorough vetting process. They must verify that you earn enough to pay back the money.
