Trying to get a charge card in South Africa with a low loan score may sound very daunting initially. Well, here is some hope for you. Still, with your not-so-good credit score, options remain open to you. Some credit cards come with rewards and a low fee, particularly for people with a bad credit history. They are a potential stepping stone toward improving your credit rating
How To Apply For Credit Card With A Low Credit Rating
You could still attempt to get a charge plate, even if you are on the lower end of the loan rating, but this comes with a few steps and a list of the fulfilled requirements. Below is how to apply for a gold card with a low loan reading in South Africa:
- Check your credit report. You have the right to a zero-cost loan statement from any of the credit bureaus in SA every year. Check for inaccuracies or items you may dispute and do so if necessary.
- Compare different offers on credit cards. Check online to compare the best-earned credit cards and credit profiles. Seek a card with low fees, low-interest rates, and flexible repayment terms.
- Credit card pre-qualification. Pre-qualifying for a credit card means filling out a short online form and getting an estimate of how much one could borrow and what rate one could get. This does not affect one’s credit rating and helps narrow the options. You can now pre-qualify a credit card with multiple lenders and compare the terms and conditions provided.
- Apply for a Credit Card. After selecting the charge plate, you will need to apply for it, where you will be required to give your personal information, financial info, and the required docs. Proof of income, bank statements, identity proof, and others must be furnished. The lender will then peruse through your application and do a credit check. Once approved, the charge plate and the repayment schedule will be handed over to you.
Can I Still Process Credit Cards With A Low Credit Score?
A low-level reading does not imply a total inability to take out a charge plate—it curtails your options and makes qualifying for the best gold cards tougher. Depending on the kind of credit card one is looking for and their credit history, there will be a need for a credit score to get a credit card. Generally, credit cards in South Africa require over 550 for the lowest score for a person to get. It can be found by getting your credit report for free and knowing your credit score.
For someone whose credit score falls under 550, there is still a chance of getting a credit card if alternative options are considered. Those include:
- Secured credit cards. These are the cards over which one has to give some security regarding a certain amount of money as a deposit. The deposit amount serves as one’s limit, thus reducing the lender’s risk. A secured credit card will help improve or even build up your loan rating if you pay the balance in full monthly.
- Store credit cards. They’re offered by specific stores or brands, restricting their usage to their stores or online platforms. Store credit cards might have lowered credit score restrictions and could include potential discounts or rewards for loyal customers. However, they could also have higher interest rates and fees than regular credit cards.
- Low-income earner credit cards. These are tailored to employees earning below R10 000 per month. They could have lower minimum credit score requirements and be offered at cheaper monthly fees than other credit cards. However, they may come with lower credit limits and higher interest rates.
Which Bank Gives Credit Cards Easily?
The response to this query relies on one’s earnings, expenditures, and monetary objectives. But among many, a few banks have a reputation for having easy application processes and flexed credit card offers. For example, Capitec Global One Credit Card offers basic simplicity, affordability, and travel insurance. Discovery Bank Gold Credit Card gives you value for healthy living and a competitive rate. FNB Premier Credit Card offers eBucks rewards, travel insurance, and lifestyle discounts. These are some of the hassle-free charge plates to apply for in SA.
What Is The Lowest Credit Rating To Get Credit Cards In South Africa?
Your three-digit rating shows your capacity to handle loans, with a nine hundred and ninety-nine ceiling. Most credit cards require at least a score of 550, yet there are differences from card to card. This means it’s fair, and you have the advantage of really qualifying. However, some bank cards may require a higher reading, especially if they offer more benefits or lower interest rates.
Which Credit Card Does Not Require A Credit Score?
Imagine jumping into the sphere of loans for the first time or having to re-enter after some extended period off. You are likely to have no credit score or one that has gone cold, and you may struggle to get a credit card with many banks. But fear not! In South Africa, there are those credit cards that don’t hinge on your credit score. Cards like the ABSA Student Credit Card, the Nedbank Gold Credit Card, and the Capitec Global One Credit Card come to the rescue. These cards are tailor-made for beginners, students, or even those with a low income so that they can open their golden opportunity of building your credit history.
