Bad Credit Personal Loans
- Compare personal loan rates in 60 seconds
- Quotes from multiple New Zealand lenders
- No credit score impact
Bad credit personal loans are a type of personal loan product offered by specialist lenders in New Zealand and can allow you to borrow money with a bad credit history.
Bad credit personal loans will often have shorter borrowing terms, higher fees and higher rates than other types of personal finance as there is more risk to the lender in approving the loan.
What is a bad credit personal loan?
A bad credit personal loan is similar to other types of personal loan except tailored for people who have been bankrupt or had defaulted on repayments in the past.
Bad credit personal loans can be secured or unsecured, but are different from other loans in three main ways:
- Higher interest rates up to a maximum of 48%
- Shorter loan terms from 9 weeks to two years
- Higher fees establishment and ongoing fees
You can apply for bad credit loans with most specialist lenders, and the rates and fees applied to your bad credit loan will be determined by your lender during the approval and agreement process.
You can qualify for a bad credit personal loan in New Zealand if you are:
- 18 years or over
- Currently employed with a sufficiently stable income to repay the loan amount
- A permanent NZ resident or hold a work permit or visa allowing you to reside in New Zealand
If you meet the standard qualifying criteria for a bad credit personal loan, you can calculate how much you can borrow and compare lenders to find the best loan offers available in New Zealand before applying for a loan.
See How Much You Can Borrow
Find your numberWhy get a bad credit personal loan?
Bad credit personal loans are used when you have a low credit score. Your credit score reflects your credit history and is a number between 0 and 1000 that reflects an estimate of your financial stability over time.
There are three credit reporting bureaus in New Zealand, and you can request a free copy of your credit report from any of them.
- illion
- Centrix (allow 1 working day)
- Equifax (allow 10 working days)
If you’ve made mistakes in the past, these can lower your credit score and make it hard to get approved for a loan:
- Current or previous bankruptcy
- Missed debt payments or late payments
- Too many credit applications over a short period of time
- History of applications for credit being declined
Thankfully, your credit history and score improve over time when you show good financial behaviour:
- Fully pay off credit
- Don’t miss payments
- Don’t make late payments
- Manage your debts
All these actions can improve your credit score, including making consistent repayments on your new loan. If you can, examine and repair your credit score before you apply for a loan; that way you’ll have a better chance of being viewed in a positive light by lenders.
How to use a bad credit personal loan
Bad credit personal loans are used to finance when you may not qualify with traditional lenders for standard loans. If you apply for a bad credit personal loan, you’ll want to make sure you get the best deal possible, with repayments you can easily manage.
Find ways to pay less interest on your personal loan, pay the loan off faster, make extra repayments and find a loan with as few fees as possible.
Specialist lenders in New Zealand offer bad credit personal loans with a simple online application. However, this type of finance will generally feature higher interest rates, high fees and shorter terms than traditional loans.
Before you apply, make sure you’ve considered any available government assistance schemes, and spoken to a financial adviser to accurately assess your borrowing capacity and financial stability.
See If You Qualify For A Bad Credit Personal Loan
Check if you qualify