Loans for People with Bad Credit

Do you need to borrow money but have bad credit? Well you’ve come to the right place. Loans for People with Bad Credit does exactly as the name suggests. We provide access to credit, for people whose credit rating is not the best. This is because we understand that having a bad credit rating can be a result of circumstances out of your control, and even if they are within your control, we know that people make mistakes.

So, what exactly are loans for people with bad credit?

They are small personal loans that you can apply for without requiring a credit check. They are loans for people who need access to cash, but are limited by their ability to borrow because of their low credit score.

How do you get loans for people with bad credit?

Normally you get them by applying online. For instance, you will be able to apply for them with us very soon. You will just have to fill out our easy application form and then receive an outcome of your application within an hour!

Who is eligible to get loans for people with bad credit?

Anyone can apply! You just need to be at least 18 years of age, be a New Zealand citizen or permanent resident, be receiving regular income and not be declared bankrupt. That’s it!

How much do loans for people with bad credit cost?

The costs involved include an establishment fee of 20% plus monthly fees of 4%. To get a clear idea of how much they will cost, use this personal loan calculator

How is your credit score calculated?

You may be wondering what exactly your credit score means? Well, in a nutshell, it’s a number from 0 – 1200, that indicates your history with using credit. It’s a number that credit providers look at to give them an indication of whether they should lend money to you or not. It factors in your payment history (which shows how reliable you have been with paying your bills on time), amount of debt you have, the length your of credit history, how many times you have been applying for new credit recently and the diversity of your credit use.

What is a bad credit rating?

So, what exactly is considered a bad credit rating? To give you a numerical value, a good credit rating is a figure anywhere between 622 and 725, anywhere below 622 is considered average or below average. Whereas anywhere above 725 is considered very good.

How can having bad credit affect you?

Having a bad credit rating can have several negative side effects that can impact your life. Here is a list of some of the ways bad credit can affect you:

You may have difficulty getting a phone contract, as providers need to see that you are going to be reliable with paying your phone bill on time
You also may have trouble getting a rental contract, as letting agents must ensure that you are going to be reliable with paying your rent
You may be charged higher insurance premiums, since insurance companies have found that lower credit ratings are linked to higher claims, so they will charge you more
You also may have trouble buying a car, since you may have difficulty being approved for a car loan. If you are approved you may be charged higher interest rates
You may get contacted by debt collectors, if you have defaulted on any loans or bills. Getting chased up by debt collectors is stressful and impacts your sense of well-being in this way.

How do you get a good credit rating?

Your creditors report your payment history to your creditors, so as you make your payments on time, your creditors will report this to the credit bureaus. This means that your credit rating can increase month by month.

How long does it take to improve your credit score?

The amount of time it takes depends on how bad your credit score is. Minor defaults can stay on your credit report for up to 5 years and court judgements stay on your credit report for 4 years. Though, bankruptcy can be recorded on your report for up to 7 years.

If you have only just started using credit, and have not yet had yet the chance to build up a history, your credit score might be low. Though, this means that it might not take you long to build up a good history if you start using credit and being responsible with your repayments.

How do you find out your credit rating?

Nevertheless, it’s always important to check your credit score before you apply for loans for people with bad credit. It might be better than you think.

You can find out your score at one of the following websites:

https://www.centrix.co.nz/centrix/Personal/Get+my+credit+report.html

https://www.checkyourcredit.co.nz/MyAccount/Order/StandardService

https://www.mycreditfile.co.nz/products/my-credit-file

How can getting loans for people with bad credit improve your credit score?

One great thing about bad credit loans is that they can in fact be a way to improve your credit rating. Borrowing credit and making your repayments on time will show that you are able to use credit responsibly, therefore raising the value of your credit.

Key bad credit loan terms!

Credit rating/ Credit score	These two terms are used interchangeably and mean the same thing – the value from 0 to 1200 that represents the info on your credit report
Credit report	A record of your financial history: includes length of credit history, the credit card balances you have outstanding, your previous addresses, your employer as well as other financial information.

So, if you’ve got bad credit but need access to cash, apply for loans for people with bad credit here!