Are you having a hard time getting approved for a credit card because you are blacklisted? You’re not alone. Fortunately there are credit cards out there that don’t need a credit check. Here’s what you need to know.
Credit cards for blacklisted people in South Africa are on offer as a different type of finance solution. If you need a credit card but you are blacklisted then these are available in the form of prepaid cards.
They come as MasterCard and VISA cards and vendors throughout the world accept them. One of the requirements to qualify for these types of credit cards is that you must have your salary paid directly onto the card account.
People in South Africa who qualify for these credit cards:
- Blacklisted people
- People under debt review
- Bad credit clients
- Low income clients
- Those who do not qualify for a normal card
No Credit Check Credit Cards
No credit check credit cards are exactly what they sound like: credit cards that don’t require a credit check. Instead, they’re based on your ability to pay, your income, and other factors.
Pros of No Credit Check Credit Cards
- No credit check means that even if you have bad credit, you can still get approved for a credit card.
- They can help you build credit if you use them responsibly and make payments on time.
- They can be a useful tool for emergency expenses or unexpected purchases.
Cons of No Credit Check Credit Cards
- They often come with high interest rates and fees, so it’s important to read the terms carefully before applying.
- These cards may not have the same rewards or benefits as other credit cards.
- They may have lower credit limits than other credit cards.
This may also interest you: Bad Credit Credit Cards in South Africa
Benefits of Credit Cards for Blacklisted People
If you are are blacklisted the biggest benefit to having this type of credit card is that you will receive an update monthly. This goes on your credit record that you own a card and you are making payments on time and in a responsible manner.
So this will help you turn a bad credit record into a good one. These types of cards are an excellent solution for someone with a poor credit history. Or for people who are in the middle of a bankruptcy debt review situation.
No bank account is necessary to qualify for this kind of card. In addition there are no credit checks either. You can use them worldwide, pay bills. Withdraw cash from other accounts at an ATM cash machine and receive your wages or salary directly onto your card.
This may also interest you: No Credit Check Credit Cards for Blacklisted
Qualifying for one of these cards is hassle free and requires no long and frustrating approval process. There might be a small deposit or fee at the time of applying for one of these cards. However all in all this is a great solution for those who need a credit card but are blacklisted or have a bad credit history.
In addition this is a good solution for low income earners that need a credit card.
Applying for Credit Cards if you are Blacklisted
You can apply online if you want to get prepay credit cards for blacklisted people to shop with in South Africa. So you know that it is an effortless procedure. Some of those that are available also have a budget facility. Therefore you can make sure that you aren’t wasting your money.
There are many benefits to using a prepaid credit card. And just the simple fact that it is prepaid is enough! Their fees are not bad or even free and you have the choice of either a Visa or MasterCard. Whichever suits your spending better.
It is optional for you to make use of the budget facility. So it’s not compulsory and if you don’t think you need it then you have no reason to use it.
If you are blacklisted you won’t qualify for a credit card at these banks:
- Absa bank
- Capitec bank
- FNB
- Nedbank
- Standard Bank
- African Bank
- Bidvest Bank
Therefore don’t waste your time contacting these creditors as you will not meet the requirements. Because of your low credit score.
Reasons to go Prepaid
It is a much wiser idea to get prepaid credit cards to shop in South Africa. Because then you won’t find yourself in unnecessary debt.
The way in which it works is much like a debit card but it is a lot more convenient.
For example booking hotels online is more tricky if you don’t have a MasterCard or Visa credit card. So now with your prepaid card you can do all the things you would be able to if you had an ordinary one. The only difference is that you are not buying on credit.
Another one of the benefits besides their reasonable rates and fees is that you do not pay any interest on them. Once all the funds on the card have been used you have to reload it with more money to use it again.
Tips for Using Blacklisted Credit Cards Responsibly
- Read the terms and conditions carefully before applying.
- Only use the card for necessary expenses that you can afford to pay off in full each month.
- Make payments on time to avoid late fees and damage to your credit score.
- Keep your credit utilization low by only using a small portion of your credit limit.
- Monitor your credit score regularly to track your progress.
One tip that not many people think of when trying to get a credit card is to check if you qualify for a store credit card.
Many major retailers in South Africa offer their own branded credit cards that can be used only at their stores, and they often have more lenient approval requirements than traditional credit cards.
Plus, they may offer rewards and discounts for purchases made at the store, making them a worthwhile option for frequent shoppers.
However, it’s important to use store credit cards responsibly and make payments on time to avoid high interest rates and fees.
Additionally, keep in mind that opening too many new credit accounts can have a negative impact on your credit score. So, only apply for a store credit card if you shop there frequently and can handle the responsibility of having another credit account to manage.
When you’re Credit Score is Healthy again
At some point you won’t be blacklisted anymore so you might want to consider a regular credit card from one of the major banks in South Africa
Here are the 5 most popular credit cards in South Africa, based on market share and customer preferences:
ABSA Bank Credit Card: ABSA Bank is one of the largest banks in South Africa, and their credit cards are popular for their rewards programs, competitive interest rates, and various options for different customer needs.
Standard Bank Credit Card: Standard Bank is another popular choice, with credit cards that offer travel rewards, cashback, and other benefits. They also have a range of cards for different income levels and credit scores.
FNB Credit Card: FNB, or First National Bank, is popular for their innovative banking products, and their credit cards are no exception. They offer cashback rewards, travel rewards, and other perks to their customers.
Nedbank Credit Card: Nedbank offers a variety of credit cards, including ones with travel rewards, cashback, and other benefits. They also have a focus on sustainability and offer eco-friendly credit cards.
Capitec Credit Card: Capitec is a newer bank in South Africa, but their credit card has quickly become popular due to its simplicity, low fees, and transparent pricing. Their credit card also offers cashback rewards and other benefits.
It’s important to compare the features and fees of each credit card before choosing one, as each may have different eligibility requirements, benefits, and drawbacks depending on your financial situation and spending habits.
To Summarize
In summary we have learnt that you can get a credit card in South Africa if you are blacklisted. However it may not be the solution that suits you because you have to pre-load the account with your own money.
So shop around and have a look at the reviews online and the various options of accounts available to you.
Credit cards for blacklisted people can be a useful tool for those with bad credit, but it’s important to use them responsibly and understand the potential drawbacks. Consider alternatives and read the fine print carefully before applying.
Perhaps the biggest win of all is these types of credit cards for blacklisted people can help you build your credit score back up to a healthy level again. Which is especially helpful if you are under debt review in South Africa.