Cash Converters Loan vs Cash Crusaders Loan, Which is Best?

Sometimes we all need some extra cash for different reasons. We could experience some temporary financial difficulty, or we want to make an expensive purchase, such as buying a car or funding a start-up or a dream wedding.

Whatever the reason, there are various financial service providers with different loan options to choose from, depending on your needs. If you’re looking for quick and easy loans to repay in either one or three months, you could turn to South Africa’s well-known pawnbroking companies – Cash Converters and Cash Crusaders.

Both offer loans, but how exactly do they compare, and which one is the best?

Cash Converters

Cash Converters understand that cash is king and therefore offers three different loan offers. The Cash Advance Loan option lets you borrow money against your pre-loved items, converting things you own into cash in your hands. It’s merely taking your goods to one of the stores near you with an original identity document. Their consultants test and evaluate your assets and also discuss your personal loan needs. They make you an offer, and if you accept, the choice is yours of either taking it in cash or get it loaded onto a Cashies Card™. The total amount (outstanding fees, VAT, and the loan amount) is payable on the same day of the next month, and you’ll get your goods in the same condition you took it in.

The Payday Loan option lets you borrow money against your salary. The Personal Finance Centre at the nearest store will assist with documentation after discussing your personal loan needs. If your loan request gets approved, again, you have a choice of receiving it in cash or onto a Cashies Card™. The total repayment is due under a DebiCheck mandate collection (DebiCheck lets you confirm electronic payments to prevent fraud against your transactional account).

The 1|2|3 Loan is the third option and lets you loan R2 000 as a single loan transaction. The loan is repayable over three months in three affordable installments. If you qualify, the money will be paid to you within a short 24 hours. This requires you to pop into your nearest store and discuss your loan needs with the consultants. As mentioned above, according to your preference, the money is payable in cash, or it can be loaded onto a Cashies Card™. The total repayment amount is due under a DebiCheck mandate collection over three months.

For any of these loans, you are required to be 18 years or older, and be a South African citizen with proof of identity (ID, smart card, passport or driver’s license). With the Payday and the 1|2|3 loans, you must be permanently employed with your latest payslip, the last three month’s bank statements and be registered for cellphone banking. Proof of residence needs to be presented as well as contact details for you and additional friends or family.

Cash Converters guarantees ethical, legal and above-board loans services as all stores are registered credit providers with the National Credit Regulator. Short-term credit transaction fees are charged as per regulations to the National Credit Act. An initiation fee of R189,75 per credit agreement is charged as well as 10% of the amount over R1 000 advanced. Interest per month is 5% on the first loan and 3% per month on subsequent loans within a calendar year. A monthly service fee of R69 is included and is pro-rated for the first month.

Cash Crusaders

Cash Crusaders only offers one loan option and requires you to take your valuables to the store and get a 30-day secured loan between R1 000 and R15 000. Anything from phones to electronics, jewellery, power tools, microwaves and more, can be pawned.

You can apply online or by visiting one of the Cash Crusaders stores near you. When applying online, the platform enables you choose the amount you’d like to borrow and lets you upload pictures of the items you wish to loan against. The online buyers negotiate a deal on your behalf when they review your submission. If you accept the offer, you can drop off your valuables and collect your cash.

Loans are payable in 30 days, and if not, your items will be sold. Depending on the loan amount selected, you’ll be able to see the initiation fee, interest and fees, service fee as well as the total repayment amount.

For example, if we compare Cash Crusaders’ loan for an amount of R2 000 and Cash Converters’ 1|2|3 Loan of R2000, your total repayment amount to Cash Crusaders will be R2 440. This includes the initiation fee of R294, interests and fees of R100, and the service fee of R46. Cash Converters total repayment amount will be an estimated R2 896,75. This includes the initiation fee of R189,75, interests and fees of R500 over the 3 months, and the monthly service fee of R69 (or R207 over the three months).

Transactions at Cash Crusaders can be processed over weekends, depending on the application time. It should be done before 12:30; otherwise, the transaction will only be attended to on the next working day. No credit checks are done because of the valuables you leave as collateral, and no payslips or bank statements are needed.

So, which one is the best? The total repayment amount from Cash Converters are more than Cash Crusaders’ and will be the same when choosing to use the Cash Advance Loan. The fact that Cash Crusaders offers an online platform to apply makes the process so much more comfortable. But if you’re more of an in-store customer, you can visit either. If you don’t have any values to turn in, then Cash Converters’ 1|2|3 Loan is the alternative to still get a loan without potentially losing any valuable items. This loan also buys you time to repay the total amount over three months. The best option would depend on the customers’ preference, loan amount needed, collateral available, and ability as to how soon the loan account can be settled.