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When a fast money top up is desperately needed, one of the first things people do is have a look for a personal loan. During your search, you’re bound to come across short-term loans which are also known as payday loans. These faster loans don’t include credit checks as they’re designed for situations where immediate access to the money is crucial.

You’ll learn pretty quickly while exploring the options out there that in most cases, your credit score is the first thing that loan companies check before they progress your application. In this post, we’ll go over some the best reasons to look for loans that don’t include credit checks.

First, let’s go over:


Why payday loans don’t need credit checks

Here at Pretty Penny Loans, payday loans are the core product we offer. These quick loans are not meant for long-term repayment arrangements like typical personal loans. Instead, payday loans need to be paid back as soon as you get your next payment from work. If you’re running low on cash but know you have your salary coming up within the next few weeks, a payday loan could be a fast and practical solution for your situation.

Long-term loans are based on your credit check because the providers want to be sure you’re going to make the repayments responsibly. The best way to be sure of this is to see if you have a great long history of paying credit back as agreed. With payday loans however, the terms are more immediate, so your history isn’t as important to us. What we look for is a stable income from your place of work. You prove you have this by showing us your most recent bank statements in your application.    


The benefits of dodging the credit check

The most obvious benefit of not having to deal with a credit check is if you have a bad credit history. When your rating is low, you’ll have a hard time applying for things like credit cards or long-term loans. If you’ve been refused by other forms of credit, but you have a solid and consistent income, you’ll be able to access the funds you need via a short-term loan.

Another key benefit is speed. Typical loans take ages to process partly because the credit check takes so long to complete. Payday loans in contrast, can be paid out much faster because there’s far less reliance on performing this check. We take a good look at your current financial circumstances and aim to come to a responsible lending decision for every customer as quickly as possible. In most cases, we can have the money paid out within 24 hours of your application being accepted. This isn’t really possible with loans that involve time sapping credit checks.


Payday loans won’t damage your credit score if you are refused

One of the big risks of applying for credit that you’re not sure you’re eligible for, is your rating being damaged further. When you are refused a conventional loan, mortgage or credit card, there’s a chance your credit score will end up being lower than when you first applied. Why? Because most finance companies see it as a bad thing that someone else has refused you, so your score goes down to represent the fact that your application was turned down.

When you apply with Pretty Penny In NZ, our payday loans have no credit check meaning we don’t look up your history at all. This means there’s no chance of your rating being disturbed even if your application is not approved. If you don’t earn enough for us to accept the amount you’ve asked for, we may get back to you with a lower offer that we think is more suitable for your situation.

Having a solid financial plan is one of the best things you can do to ensure you’re able to repay what you owe. This is something we always encourage, especially for those that regularly find themselves in desperate money shortages.

That’s it! These are the main reasons people are increasingly looking for no credit check loans in NZ. By bypassing the credit check, payday loans can be paid to you faster and regardless of your current credit rating. We hope this quick overview has helped!

Read more about no credit check loans in NZ here, or in our previous blog post: How To Repair Bad Credit With Loans In NZ

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