If you’ve never had a loan before, your credit score will be low due to a lack of history. If you have had some form of credit before but not kept up with the repayments as strictly as you would have liked, your score will be bad due to negative history. We know exactly what’s it’s like to have to get through modern life with a poor credit report, but it’s not the end of the world. You can still find bad credit personal loan solutions in NZ, and use these opportunities to improve your standing and get back on top of the game.
In this piece, we’re looking at why it’s so essential for those with bad credit to make sure they repay cash loans without delay. First we’ll look at why your credit score is so important.
How your credit score impacts your life
Your credit history is the information banks and other conventional loan providers will look at when you apply for finance. The better your score, the more favourable their terms will be on any loan they agree to provide you. If your score is too bad, they could refuse you altogether.
If you want to buy a house or car, you’ll likely need finance to do it. So if your credit history is really bad, you’ll never be able to access the funding necessary to make these high value purchases. You may also struggle to pass vetting for renting your own place, or buying anything with instalments. If these are all things you aspire to do one day, you’ll need your credit score in tip top shape.
Which loans can you apply for with a bad credit score?
At Pretty Penny Loans, we specialise in short-term loans which are also known as payday loans. Where a normal loan is hugely dependent on your current credit score, a short-term payday loan is not. We don’t look at your history with credit as a key factor. We are far more concerned with your current income level and ensuring you’ll have enough to pay us back when you next get paid by your employer.
All you need when you apply for a payday loan is your photo ID and a recent bank statement. So these loans are great for people that have bad credit but need a fast personal loan in NZ. We understand that sometimes costs come up that can’t be ignored. We do all we can ensure the money arrives in your account as soon as possible. Most of the time, the funds arrive within hours of your application being approved!
The more debt you get into, the more your credit score will be impacted. As soon as you realize you might not have enough to make repayments, the most important thing you should do is make contact to inform us that you’re having difficulty. We’ll do everything we can to help make your repayments more manageable. Not all loan providers will have the same approach.
The last thing you want to do is ignore your responsibilities and end up dealing with a much larger account than you ever wanted because the fees have mounted. Avoid this by letting us know and we’ll do all we can to help!
If you manage your short-term loans successfully, you’ll have a great chance of improving your reputation with credit. This can be an effective way to jump start your return to good standing and prove that you can be a reliable loanee.
It’s possible to enjoy life without taking huge loans or paying for everything with credit cards. The more sensibly you live, the higher your disposable income and the more you’ll be able to save. We’re used to working with customers that are looking for a chance to show that they can repay loans swiftly, which is why we have such an open-mind towards every applicants individual circumstances.
If you have a poor credit history but need money in an emergency to pay unexpected costs, one of our payday loans could be your best option. You can borrow the exact amount you need and the funds will be available to you within the same day you apply.
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Still have questions? No worries. For more information, please get in contact with the Pretty Penny team.
You can also read more about bad credit loans in our previous blog post: 5 Tips When Applying For A Bad Credit Loan