We know that lenders in New Zealand responsibly do a credit check in any typical loan application process. They go through the borrower’s credit history to see if he has open credit accounts, defaulted on other loans, and other information that resembles the aforementioned. So what does it mean when the lender offers “no credit check cash loans”?
When a lender provides a cash loan with no credit check, it looks to pass the borrower’s past disparity in his credit file. Instead, the lender’s judgment on whether to give him access to funds is based on his income, employment, and assets. The set of criteria will inform the lender if the borrower will be able to make the loan repayments.
What is a credit check?
A credit check is a summarised version of your financial history for example loans, debt, defaults, and repayments is in your credit report. Every negative mark such as unpaid debts or debt relief can be included and will affect your credit rating.
Your repayment history may also be included in the credit report. Whether you paid on time or missed your monthly payments on insurance, electricity, phone bill, or credit card — can end up on your credit report.
When lenders assess whether to give you access to funds, they check your credit report and scores it (credit rating). The credit rating is used to know if you are “good” borrower to lend cash to. Your financial history, assets, and liabilities are valuable information which helps the lender to judging your loan repayment capabilities. A bad credit rating equals a higher risk which can prompt the lender to decline the application or impose a higher interest rate.
Why consider a No credit check cash loan in NZ?
Equating your current financial status with different loan options, a no credit check cash loan might be the right one for you. Deliberate on the following situation for assessment:
- Multiple credit applications within a short time — Credit enquiries have a negative impact on your credit score if it’s done within a short time. There is a number of days that serve as a time period after you’ve made your latest loan application. The typical time period (counts as one credit enquiry) depends on the credit scoring model used to pull your credit score. There’s no need to worry if multiple loan applications will hold you back. Just meet the other criteria and requirements set by the no credit check financial institution for a better chance at a loan. To have an actual sample, check Pretty Penny’s no credit check cash loans.
- Bankruptcy — If you are a bankruptcy discharged individual, you still have a chance for a cash loan without credit check, unless stated otherwise by a specific lender. A bankruptcy discharge is a court order that relieves a person from his obligation to pay his debt. The lender may set specific criteria to meet, considering your current financial status.
Frequently asked questions about No credit check cash loans
Q: Is it legal to acquire no credit check loans?
A: Yes, it is legal. The lender has to make sure the borrower will not struggle to make the loan repayments.
Q: Can I apply for a loan if I receive Work and Income benefits?
A: Your Work and Income benefits can be regarded as your income. Specialist lenders may let you get a no credit check cash loan, but with restrictions. Do your research to know more about their terms and conditions.
Q: Is repaying the loan early allowed?
A: Depending on the lender of your choice, they may or may not charge an additional fee for early loan repayment.
Q: Will my employer be involved in the process?
A: It’s possible that your employer will be asked to verify that you are indeed working in the company and getting a paycheck. This is to make sure you have a steady source of income and can make the repayments.
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Q: What are the required documentation?
A: Aside from proof of income and bank statements, you have to submit your driver’s license (or other ID i.e. passport); utility bills; Community Services Card.
Q: During an emergency, how fast can I get the cash?
A: It varies between lenders. Usually, you will receive your funds the following day if got approved around 4 pm on a business day.
Q: Will it be guaranteed if I apply for no credit check cash loans?
A: There is no guarantee for a no credit check cash loan. You should be skeptical of any lender who says otherwise. Assessment is always a part of responsible lending, so they will look at your income, employment, and bank statement to be sure.