A bad credit score will get in your way for the rest of your life if you leave it in less that perfect shape. It’s important to always work towards repairing your score so that you can achieve the best rates possible when you want to buy major assets in future. In this post, we’ll be taking a look at the most important things you can do to ensure you repair bad credit with loans in NZ. Read through these pointers to help your credit score and avoid bringing further harm to it. We’ll begin with:
Never miss repayments
This is the very worst thing you can do when you’re trying to repair your credit rating. Every time you miss a repayment, your score will take a major hit. Your main objective has to be to pay the exact amount you have agreed right on the dates set in your loan terms.
At Pretty Penny, we try to work with our borrowers when they think they’ll have trouble making repayments. If we can restructure the repayment schedule to make it easier for customers to pay what they owe successfully, then that’s what we try to do.
Most other loan providers won’t have this kind of open-minded approach. They’ll more than likely prefer to do things by the book as strictly as possible. As soon as the date of you repayment passes, the penalties are applied and your rating is lowered. Avoid this threat by making sure you plan ahead and have your payments ready and waiting.
Don’t take loans beyond what you can afford
This is a common mistake that many people make when they’re looking for financial products. Just because you’re eligible to take a certain amount, it doesn’t mean you should necessarily be taking that max amount. This mentality is common across a variety of loans from personal car solutions to mortgages.
Your loans should always be well within your means to repay, no matter what state your credit rating is in. Turning money issues around is much harder than keeping your finances in order to begin with. That said, there’s always a way to get your status back to fine condition as long as you’re willing to work at it. If you’re looking for a loan to buy something cool or personal, then a long-term loan is what you need.
Need cash quickly to cover a sudden and necessary cost? Then a short-term payday loan could be the right answer for you. Let’s take a look at the kind of finance products that might be available to you if you want to repair bad credit with loans in NZ:
Loans that don’t assess credit scores
If your score is already in bad shape, you’ll need solutions that don’t look as your rating at all. Your main options are secured finance products or payday loans. Secured credit cards and secured loans require you to pay a deposit upfront in order to gain access to the credit. These are only an option if you have a safety net stash of cash that you can use to cover the deposit.
Don’t have any cash available and need the funds straight away? Then you can think about taking a payday loan to get you through to your next payday.
To get a payday loan, you’ll need to prove that you have a solid income. This is how we assess whether or not a loan amount is suitable for your situation. We don’t want to offer loans to people who can’t afford them, so we do everything we can to arrange loan amounts that are as responsible as possible.
Time is a huge factor. If you have time on your side and your costs are not urgent, then you can afford to use secured solutions to raise your credit score steadily. If you actually need the money to cover priority expenses, then secured options won’t be very helpful. They can take time to process and it could be weeks before the funds are accessible.
Payday loans are the fastest option. In most cases, we can have the money paid into your account within hours of your application being accepted. As long as you pay what you owe exactly as agreed, you’ll be back on the road to proving you can be responsible with credit.
Read more about bad credit loans in NZ here, or in our previous blog post: Why It’s So Important To Repay A Bad Credit Personal Loan in NZ