About loans and responsible lending

At Money Wisely, when we review a payday loan application, we treat it responsibly. We aim to always:

  • Treat our customers fairly
  • Be transparent
  • Only lend to people we feel will be able to repay back a loan

To help us do this, we:

  • Are a payday loan direct lender and a broker
  • Display all costs and what you will pay back on our website
  • Run a number of credit and identity checks
  • Offer flexible and instalment loans

Loan companies do not always have the best reputation. We are working hard to change that by putting our customers first and investing in responsible lending.

Can I Get A Payday Loan With Bad Credit?

You may still be able to get an online loan with bad credit in the South Africa – it will depend on the lenders’ criteria. A responsible lender must check affordability, not just your credit score. It is essential to remember your credit rating will have an impact on your ability to get loans from financial institutions, including banks and payday loans.

Do Payday Loans Affect Your Credit Score?

If you take out any kind of credit, whether it’s a payday loan, credit card or something else, it will have an impact on your credit score. A credit score or credit report is something financial providers take into account before they decide whether to lend money to you. It’s true that payday loans have a higher APR when compared to other loan types, such as credit cards. So you should consider other options if they are available to you. Remember that falling behind on loan repayments could affect your credit score.

Do Payday Loans Help Your Credit Score?

Taking out a loan, in some cases, can help your credit score. While some lenders may view taking out a payday loan as a sign you’re struggling, paying a payday loan back on time could show a potential lender that you are reliable in repaying loans and debt. Failing to pay a loan back would, however, negatively affect your credit score. Sometimes it is better to consider improving your credit score so you can find a better or cheaper form of credit.

How are payday loans different from other loans?

The main difference between payday loans and other loan types is the amounts you can typically borrow and the period you have to pay back. Payday loans are usually for lower amounts, generally up to R30, 000 and are paid back over a shorter period, usually one to 6 months. Payday loans also have a higher annual percentage rate, or APR, when compared to long-term loan options.

How Can I Protect My Privacy When Applying For A Payday Loan Online?

When you apply for a Money Wisely payday loan online, we use encryption technology, to protect your data. Your online security is our priority. Be wary if you are asked to pay for anything upfront in order to get a loan, it could be a scam.

How Do Online Payday Loans Work?

The application process for loans will vary depending on the lender you choose. This is how the loan application process works here at Money Wisely:

  • Tell us some necessary details about where you live, your job and your expenses
  • Enter your bank details so we can run a credit check
  • We’ll run some other checks too, including affordability checks and you’ll receive a decision
  • If your application is approved, the cash will be in your account within one working day

How Should I Use A Payday Loan?

Payday loans are supposed to cover the cost of a financial emergency while you wait for your next paycheque. You should only borrow what you need, and these types of loans should only be used as a quick remedy in the short term. It is not as a long-term solution. You should not use a payday loan if you are struggling financially. For example, you cannot cover regular expenses and bills. A payday loan is a one-off solution for something unexpected.

What Checks Are Carried Out For Payday Loan Applications?

As part of our commitment to responsible lending, there are many types of checks we do. First, we check the following criteria for eligibility:

  • Minimum 18 years of age
  • South Africa Resident
  • In current employment and take home a minimum of R4000 a month

We also perform affordability checks; for example, we check that you can afford the repayments taking into account all your monthly costs. If you have been provisionally accepted, your application will go to our underwriting team who will assess your suitability. They will look for signs that may make this product unsuitable for you or put you in a worse situation financially and evaluate your individual circumstances. A credit check and score will provide an indication of how you have done with previous credit payments, outstanding debts and late payments.

What checks are done for loan applications?

To assess you for a loan application, we run a number of checks, including:

  • Credit score check – we always check credit scores and use this to make our decision on your loan.
  • Employment check – we only lend to people in employment.
  • Affordability stress test – we look at what you want to borrow with what you can afford to repay.

We also offer a flexible repayment plan, allowing you to pay back your loan in easy repayments rather than one lump sum.

What Does APR for Payday Loans Mean?

If you’re thinking of getting a payday loan, you’ll undoubtedly come across the term APR. In short, APR stands for Annual Percentage Rate; it is presented as a percentage. APR is a calculation of the full amount you will pay for a loan over a one year period. Find out; please read our in-depth guide to annual percentage rates.

What Happens If I Need More Time To Pay Off My Payday Loan?

We understand that unexpected circumstances can cause you not to be able to repay your loan on time. If you think that you’re going to miss your repayment, then let us know, and we will do everything we can to work with you in order to make an affordable plan. It is better to let us know before the collection date if you feel you will likely miss your repayment.

What Is An Unsecured Loan South Africa?

A payday loans South Africa is an unsecured loan. This means that if you take out a payday loan, you don’t have to pledge an asset, like a car or a home, as collateral or security against the loan. This means that, if you fail to make repayments for your payday loan, you won’t have to give up an asset, like you would with a secured loan.

However, late payments will be reflected on your credit report, and this may affect applications for credit in the future.

What Is The Lending Criteria For Money Wisely Payday Loan?

To take out a loan with Money Wisely, you will need to be:

  • At least 18 years of age
  • A ZA resident
  • In current employment, taking home at least R4000 a month