Credit without Online Banking

South Africa, as one of the largest and most developed economies on the African continent, brags of a diverse financial landscape. The country has a well-regulated banking sector, which includes large multinational and local banks, as well as smaller, specialized financial institutions. Despite its robust financial industry, a huge portion of the South African population remains unbanked or underbanked, with limited access to formal banking services.

Understanding Credit and Creditworthiness

Definition and types of credit

Credit refers to the trust placed in a borrower to repay borrowed money or fulfil a financial obligation. In essence, it is an agreement between a lender and a borrower, where the lender provides funds, goods, or services upfront, and the borrower repays the debt later, usually with interest. There are different types of credit, including:

  1. Personal loans: Unsecured loans provided by banks or other financial institutions for personal use.
  2. Mortgages: Secured loans used to purchase property, with the property serving as collateral.
  3. Credit cards: A form of revolving credit that allows users to borrow money up to a predetermined limit and pay it back with interest.
  4. Retail store credit: Credit provided by retailers for purchasing goods and services within their stores.
  5. Overdrafts: A credit facility linked to a bank account, allowing users to overdraw up to a certain limit.

Factors that determine creditworthiness

Creditworthiness refers to the likelihood that a borrower will repay their debts on time and in full. Lenders assess creditworthiness based on several factors, including:

Credit history: A record of a borrower’s past credit usage, repayments, and outstanding debts.

Credit score: A numerical representation of a borrower’s creditworthiness, calculated based on credit history.

Income and employment stability: Consistent income and stable employment demonstrate the borrower’s ability to repay debts.

Debt-to-income ratio: A measure of the borrower’s monthly debt obligations relative to their income, indicating the capacity to take on additional debt.

Collateral: Assets pledged by the borrower as security for the loan, which can be seized by the lender in case of default.

How credit scores work in South Africa

In South Africa, credit scores are generated by credit bureaus, which collect and analyse credit-related information on individuals and businesses. Credit scores range from 330 to 850, with higher scores indicating better creditworthiness. The factors that influence credit scores include payment history, amount of debt, length of credit history, types of credit, and recent credit inquiries. By maintaining a positive credit history and practicing responsible financial habits, South Africans can improve their credit scores, increasing their chances of accessing credit at more favourable terms.

Types of credit products available

Traditional banks in South Africa offer a diverse array of credit products to cater to the different needs of customers. Some of these products include:

  1. Personal loans: Unsecured loans that can be used for different purposes, such as home renovations, education, or debt consolidation.
  2. Mortgages: Loans used to finance the purchase of property, with the property serving as collateral.
  3. Vehicle finance: Loans provided for purchasing new or used vehicles, either through hire-purchase agreements or lease arrangements.
  4. Credit cards: Revolving credit facilities that allow customers to borrow money up to a predetermined limit and pay it back with interest.
  5. Overdrafts: Credit facilities linked to a bank account, enabling customers to overdraw up to a specified limit.

Comparing the pros and cons of using traditional banks for credit


Established reputation: Traditional banks are well-regulated and have a long history of providing financial services, which may inspire trust and confidence among customers.

Wide range of credit products: Customers can choose from a variety of credit options to suit their specific needs.

Competitive interest rates: Traditional banks often offer competitive interest rates on their credit products, although this may vary depending on the customer’s creditworthiness and other factors.

Access to additional services: By obtaining credit from a traditional bank, customers may also have access to other financial services, such as savings accounts, investments, and insurance products.


Stringent eligibility criteria: Traditional banks may have strict requirements for credit approval, which could make it difficult for some individuals, particularly those with poor credit history or low income, to access credit.

Limited accessibility: For those without online banking capabilities, visiting physical bank branches may be inconvenient and time-consuming.

Complex application process: The credit application process at traditional banks can be lengthy and may require extensive documentation.

Potential for higher fees: Some traditional banks may charge higher fees on their credit products compared to alternative credit providers.

Eligibility criteria and application process

To qualify for retail store credit, applicants typically need to meet certain eligibility criteria, such as:

Age: Applicants must be at least 18 years old.

Residency: Applicants must be South African citizens or permanent residents.

Employment: Applicants must have a stable source of income or be able to provide proof of income.

Credit history: Retail stores may perform a credit check to assess the applicant’s creditworthiness.

The application process for retail store credit may vary from one retailer to another but generally involves the following steps:

  1. Complete an application form: Applicants need to fill out an application form, either in-store or online, providing personal information, employment details, and income information.
  2. Provide supporting documents: Applicants may be required to submit documents such as ID, proof of residence, and payslips to verify their information.
  3. Credit assessment: The retailer will assess the applicant’s creditworthiness and determine the credit limit and repayment terms.

Benefits and drawbacks of retail store credit


Accessibility: Retail store credit options are generally more accessible to individuals with limited credit history or access to online banking services.

Convenience: The application process is often simpler and quicker compared to traditional bank loans, with approvals usually taking just a few hours or days.

Promotions and discounts: Retailers may offer special promotions, discounts, or rewards for customers using their store credit cards.


High interest rates: Retail store credit often comes with higher interest rates compared to traditional bank loans or credit cards.

Limited use: Store credit cards can only be used within the issuing retailer’s stores or affiliated businesses, restricting their utility.

Potential overspending: The ease of obtaining and using retail store credit may encourage impulse buying and lead to increased debt levels.

» Read more: Why loan protection could be your lifeline.

Building and Improving Credit without Online Banking

Importance of maintaining a good credit history

Maintaining a good credit history is important for individuals seeking access to credit, as it demonstrates their ability to manage debt responsibly. A positive credit history can help borrowers secure better interest rates, higher credit limits, and more favourable loan terms. Furthermore, a strong credit profile can also impact non-financial aspects of life, such as rental applications, insurance premiums, and employment opportunities.

Strategies for building credit

For individuals without online banking, building credit may require a more traditional approach. Some strategies to build credit include:

Securing a small loan or retail store credit: Taking out a small loan or obtaining retail store credit can help establish a credit history, if repayments are made consistently and on time.

Opening a bank account: A well-maintained bank account can demonstrate financial responsibility and stability, which can contribute to building a positive credit profile.

Using a secured credit card: A secured credit card, backed by a cash deposit, can help build credit by providing a low-risk credit facility that is repaid regularly.

Becoming an authorized user: Being added as an authorized user on a family member’s or friend’s credit account can help build credit, provided the account is managed responsibly.

Paying bills on time: Ensuring that all utility bills and other financial obligations are paid on time can help establish a pattern of responsible financial behaviour.

Tips to improve credit scores.

Improving credit scores without online banking access may involve a combination of proactive measures and responsible financial habits. Some tips to improve credit scores include:

Checking credit reports: Regularly reviewing credit reports from credit bureaus can help identify errors and discrepancies that may negatively impact credit scores.

Reducing debt: Paying off outstanding debts and keeping credit utilization low can contribute to a higher credit score.

Maintaining a mix of credit: Demonstrating the ability to manage different types of credit, such as loans, credit cards, and retail store credit, can positively affect credit scores.

Limiting credit inquiries: Multiple credit inquiries within a short period can lower credit scores, so it’s important to apply for new credit only when necessary.

Establishing a consistent payment history: Making timely repayments on all credit accounts and maintaining a long history of responsible credit usage can hugely improve credit scores over time.

Managing Credit Responsibly

Budgeting and financial planning

Successful budgeting and financial planning are important for managing credit responsibly. Some key steps to creating a realistic budget include:

  1. Tracking income and expenses: Regularly monitor and record all sources of income and expenses to have a clear understanding of your financial situation.
  2. Categorizing expenses: Divide expenses into important and discretionary categories to identify areas where spending can be reduced or adjusted.
  3. Setting financial goals: Establish short-term and long-term financial goals to guide your budgeting and saving efforts.
  4. Creating a monthly budget: Allocate funds for different expenses based on your financial goals and priorities, ensuring that important costs are covered.
  5. Monitoring and adjusting the budget: Periodically review your budget to ensure that it remains relevant and aligned with your financial goals, adjusting as necessary.

Borrowing within your means

To avoid over-indebtedness and maintain a healthy financial position, it’s important to borrow within your means. Here are some helpful tips for responsible borrowing:

Assess your financial situation: Before taking on new debt, evaluate your current financial standing, including your income, expenses, and existing debt obligations.

Determine affordability: Calculate the maximum amount you can comfortably repay each month, considering your current financial obligations and living expenses.

Borrow only what you need: Avoid borrowing more than necessary to minimize interest payments and reduce the risk of over-indebtedness.

Compare credit options: Research different credit providers and their offerings to find the most suitable and cost-Successful option for your needs.

Read the fine print: Carefully review the terms and conditions of any credit agreement, ensuring that you understand the repayment schedule, interest rates, and any associated fees.

Dealing with debt and avoiding over-indebtedness

Managing debt successfully is important for maintaining a strong credit profile and avoiding financial distress. Here are some strategies for dealing with debt and preventing over-indebtedness:

  1. Prioritize high-interest debt: Focus on repaying debts with the highest interest rates first, as these are the most expensive in the long run.
  2. Consolidate debt: If possible, consolidate multiple debts into a single loan with a lower interest rate to simplify repayments and reduce interest costs.
  3. Create a debt repayment plan: Develop a realistic plan for repaying debts, allocating funds to each debt based on priority and affordability.
  4. Seek professional advice: If struggling with debt, consider consulting a financial advisor or debt counsellor for guidance on managing your debt and improving your financial situation.
  5. Develop healthy financial habits: Practice responsible spending, save for emergencies, and avoid taking on unnecessary debt to prevent over-indebtedness and maintain financial stability.

Obtain your loan with ease through Arcadia Finance. No application fees, and select from 10 reliable lenders, all compliant with the standards set by South Africa’s National Credit Regulator.

Consumer Rights and Protection

Overview of South African credit regulations

South Africa has a broad regulatory framework in place to protect consumers and promote responsible lending practices in the credit industry. Different laws, regulations, and guidelines ensure that credit providers adhere to fair and transparent practices while granting credit, protecting consumers from exploitative lending, and ensuring their rights are upheld.

Understanding the National Credit Act (NCA)

The National Credit Act (NCA), enacted in 2005, is the primary legislation governing credit practices in South Africa. The NCA aims to:

Promote responsible borrowing and lending: The NCA sets guidelines for credit providers to follow, ensuring that they assess the creditworthiness of borrowers and grant credit responsibly.

Protect consumers from over-indebtedness: The NCA prohibits reckless lending and provides consumers with the right to debt review and counselling if they become over-indebted.

Regulate the credit industry: The NCA establishes the National Credit Regulator (NCR), which is responsible for monitoring and enforcing compliance with the Act and handling consumer complaints.

Ensure transparency and fairness: The NCA mandates credit providers to disclose all relevant information to borrowers, such as interest rates, fees, and repayment terms, in a clear and understandable manner.

Resources and support for consumers facing credit-related issues.

Consumers in South Africa have access to different resources and support services if they face credit-related issues or need assistance with their rights under the NCA. Some of these resources include:

National Credit Regulator (NCR): The NCR is responsible for regulating the credit industry and protecting consumer rights. Consumers can file complaints with the NCR or seek information and assistance regarding their credit rights.

Credit bureaus: Consumers have the right to request a free credit report from any of the registered credit bureaus in South Africa once per year. Reviewing these reports can help consumers identify errors or discrepancies that may negatively impact their credit scores.

Debt counselling services: Consumers struggling with debt can seek assistance from registered debt counsellors, who can help them develop a debt repayment plan, negotiate with creditors, and provide guidance on managing their finances.

Legal aid: Low-income individuals facing legal disputes related to credit agreements can access free legal assistance through Legal Aid South Africa, a government-funded organization that provides legal representation and advice.

Consumer education resources: Different organizations, such as the NCR, credit bureaus, and financial institutions, offer consumer education resources to help individuals better understand credit, their rights, and responsible financial practices.


To successfully navigate the world of credit without online banking, it is important for consumers to educate themselves about their options and make informed decisions that best suit their financial needs and goals. By comparing different credit providers, understanding the terms of credit agreements, and practising responsible financial habits, individuals can build a strong credit profile and maintain their financial well-being.


What are some common reasons for South Africans not having access to online banking?

Some common reasons for South Africans not having access to online banking include lack of internet access, particularly in rural areas, limited digital literacy, lack of trust in online transactions, or a preference for traditional banking methods due to personal habits or cultural factors.

Can individuals with no credit history access credit in South Africa?

Yes, individuals with no credit history can access credit in South Africa through different means, such as applying for retail store credit, obtaining a secured credit card, or joining a stokvel. However, the available credit options may have higher interest rates or more stringent terms compared to those with established credit histories.Yes, individuals with no credit history can access credit in South Africa through different means, such as applying for retail store credit, obtaining a secured credit card, or joining a stokvel. However, the available credit options may have higher interest rates or more stringent terms compared to those with established credit histories.

What steps can consumers take if they feel their rights have been violated under the National Credit Act?

If consumers feel their rights have been violated under the National Credit Act, they can first attempt to resolve the issue directly with the credit provider. If this does not yield a satisfactory resolution, consumers can file a complaint with the National Credit Regulator (NCR), who will investigate the matter and take appropriate action. Additionally, consumers can seek assistance from registered debt counsellors, legal aid services, or consult a legal professional for advice.

Are there any government programs or initiatives focusing at promoting financial inclusion and credit access in South Africa?

The South African government has implemented different initiatives focusing at promoting financial inclusion and credit access, such as the establishment of the National Credit Regulator, promoting financial literacy education, and supporting micro-lending institutions. Additionally, the government collaborates with different stakeholders, including banks, non-bank financial institutions, and non-governmental organizations, to develop policies and programs that facilitate financial inclusion and access to credit for underserved populations.

How much do you need?
*Representative example: Estimated repayments of a loan of R30,000 over 36 months at a maximum interest rate including fees of 27,5% APR would be R1,232.82 per month. Arcadia Finance is an online loan broker and not a lender. Our service is free, and we work with NCR licensed lenders in South Africa. Interest rates charged by lenders can start as low as 20% APR, including an initiation and service fee determined by the lender. The interest rate offered depends on the applicants' credit score and other factors at the lender's discretion.

Loan amount R100 - R250,000. Repayment terms can range from 3 - 72 months. Minimum APR is 5% and maximum APR is 60%.