HOW DO YOU GET BAD CREDIT LOANS IN NZ?
What is bad credit?
Having bad credit is frustrating, but it doesn’t mean you can’t get a loan. At SeedCash, we adopt a people-first approach by putting our clients and their needs first. When you apply online for a loan with us, we don’t just check your credit score but also take a look at your overall financial situation.
Read on to find out more about bad credit loans in NZ and how we approach them in our application process.
In a way, your credit history and credit score is a “financial track record” and tells creditors and other financial institutions what your “creditworthiness” is. For the purposes of loan agencies, it serves as a “shortcut” to tell them how likely they are to get their money back if they give you a loan.
If you have “bad credit” this might mean that in the past, you haven’t been able to pay back loan(s) on time, defaulted on your repayments, or made any other financial errors. That’s why many consider a person with bad credit a risk, and it then becomes difficult for that person with bad credit to get loans.
The key thing to note is that while it can be “difficult” to get a bad credit loan in NZ, it isn’t always impossible…
How SeedCash sees bad credit.
At SeedCash, we understand that people can run into financial difficulty and often, through no fault of their own, fall into bad credit. It could be because unexpected emergencies eat into their finances or even because they’ve been given loans with loan terms that weren’t explained to them, encountered fees that were unexpectedly subject to change, or that had impossible repayment deadlines.
SeedCash abides by New Zealand lending laws, in particular CCCFA that focus on suitability and affordability. While we must run a credit check to assess the state of your finances, that doesn’t necessarily mean bad credit will completely prevent you from getting a loan with us. We consider more than credit when analyzing a loan application. We consider each client’s financial circumstances at large. It is worth applying for a loan with SeedCash if your credit history proves that:
- You are keeping up well with your existing ongoing financial commitments; and
- You do not have more than five unpaid defaults; and
- You do not have more than two small unpaid defaults on loan to banks or finance companies; and
- You do not have more than two small unpaid defaults to other companies; and
- You are currently not bankrupt, or under a No Asset Procedure.
Before we detail our process, check out our personal loan calculator to get a rough idea of what you can expect to repay depending on how much you need to borrow and depending on which timeframe you opt for.
SeedCash’s loan application process.
We follow a simple four-step process designed to get an insight into your finances and figure out whether we can give you a loan that you’ll be able to pay off safely. We aim to help you with our financial services, not add to your existing hardship.
While we can’t guarantee approval for bad credit loans in NZ, we will do our best to assist you in getting a personal loan.
Submit a short online application.
The first step is to submit an online application that takes only five minutes to fill it. It’s a set of straightforward questions that we use to assess your personal circumstances.
Receive an initial decision.
With your loan application submitted, it’s just a short wait while we assess
and verify the details you’ve provided against our responsible lending
criteria and reasonable inquiries, run a credit check to see if you meet our
minimum credit check criteria, and get back to you with an initial decision.
If your loan application is successful, we will begin working with you to
figure out a suitable arrangement and explain the details to you as simply as
possible.
We aim to give you a loan that will be affordable, with manageable repayment
amounts, and that will add to your financial sustainability rather than
detract from it.
Sign the agreement.
If your application is approved and we can see that you understand the terms fully, we’ll send you a set of documents that you will sign digitally. It’s a hassle-free process done through our super simple digital signing solution. You won’t have to leave the comfort of your home to be able to acquire the loan.
The funds are sent to you.
Once you’ve signed the documents and everything is in order, we will begin the
process of sending you the loan amount on the very same day.
The process for getting bad credit loans in NZ with SeedCash is simple and
designed with your best interest in mind. We ensure that you enter into an
agreement with everything clearly explained, from payment deadlines to fees…
On that note, take a look at our fees guide below to see what fees apply,
before we detail our lending criteria, so you know what to expect.
Our Fee’s Guide
Small Cash Loan
Between $1,000 - $3,000
- Establishment fee:
- $ 175
- Interest Rate:
- 14.95% ~ 49.95% per annum
- Loan restructure fee:
- $ 60
- Overpayment refund fee:
- $ 8
- Deposit processing fee:
- $ 3
- Payment default fee:
- $1.80 per day in arrears
- Default interest rate:
- your interest rate + 0% p.a
- Early repayment administration fee:
- $ 0
- General administration fee:
- $ 10
- Letter sending out charge:
- $ 10
- Wage deduction assignment:
- $ 30
- Direct debit cancellation fee:
- $ 30
- Collection agency fee:
- 20% of overdue balance
Medium Cash Loan
Between $3,100 - $5,000
- Establishment fee:
- $ 240
- Interest Rate:
- 14.95% ~ 49.95% per annum
- Loan restructure fee:
- $ 60
- Overpayment refund fee:
- $ 8
- Deposit processing fee:
- $ 3
- Payment default fee:
- $1.80 per day in arrears
- Default interest rate:
- your interest rate + 0% p.a
- Early repayment administration fee:
- $ 0
- General administration fee:
- $ 10
- Letter sending out charge:
- $ 10
- Wage deduction assignment:
- $ 30
- Direct debit cancellation fee:
- $ 30
- Collection agency fee:
- 20% of overdue balance
Large Cash Loan
Between $5,100 - $20,000
- Establishment fee:
- $ 300
- Interest Rate:
- 14.95% ~ 49.95% per annum
- Loan restructure fee:
- $ 60
- Overpayment refund fee:
- $ 8
- Deposit processing fee:
- $ 3
- Payment default fee:
- $1.80 per day in arrears
- Default interest rate:
- your interest rate + 0% p.a
- Early repayment administration fee:
- $ 0
- General administration fee:
- $ 10
- Letter sending out charge:
- $ 10
- Wage deduction assignment:
- $ 30
- Direct debit cancellation fee:
- $ 30
- Collection agency fee:
- 20% of overdue balance
SeedCash’s Lending Criteria
Like we’ve said, we don’t hide anything when it comes to our process. We want to enter into agreements in good faith, and so we lay out our criteria upfront. Let’s take a look at it so you know exactly what we would like to know.
First off, we want to know about you:
- We want to make sure that you’re at least 18 years old. Responsible lending laws prohibit lending to those under the age of 18 because it’s unlikely they’ll be able to manage a loan responsibly.
- We want to see that you’re currently living in New Zealand because that’s where we are based and licensed to operate.
- We would like to see a valid photo ID, which can be a passport or even a driver’s license.
- We also want to make sure you’re an NZ/AU resident or that you hold a valid work visa. On that note…
We also want to know about your employment and financial situation:
- We need you to show that you are working part-time or full-time and that you’ve been doing so for at least three months.
- We also want to see that you earn an average of $300 a week. Remember, we want you to be able to get a loan safely, so it’s vital that we see you have a stable income.
- We will also check your financial situation with reference to a bank statement or comprehensive credit history. While bad credit doesn’t mean you can’t get a loan, we do want to make sure you don’t have existing debt or budgetary issues.
Finally, you will need a few simple things:
- You’ll need an active bank account with at least three payroll transactions having been paid into that account.
- You’ll need to have access to the internet seeing as our whole process is 100% online.
- You’ll require a registered email address and a mobile phone number in your name. We want to make the experience as easy as possible, so we’ll need to be able to contact you easily.
How can loans help those with bad credit?
If you have bad credit, that means you’re likely already experiencing some difficulty. A loan can help you sort out your finances by being the little boost you need.
A bad credit emergency loan in NZ can help if unexpected difficulties should arise, such as a medical emergency. Because the process is fast, they can also be used to capitalize on investment opportunities that won’t stick around for long.
SeedCash Repayment
If you get one of our bad credit loans in NZ, repayment is simple. We offer repayment periods weekly, fortnightly, or monthly. Our aim is to match the frequency of your payroll.
By offering flexible repayment options, we make it so that you can always be sure you’ll be able to make your repayments on time and budget accordingly.
If you’re able to make a full early repayment and settle your loan balance sooner than expected, we encourage you to do so. We don’t charge any additional fees if you’d like to make unexpected payments in advance but be sure to contact us first.
What makes SeedCash different?
Unlike many other loan services, SeedCash wants what’s best for you. That’s why we take a careful and considerate approach to bad credit loans in NZ, and work with you to make sure you can get a loan if you can safely afford one.
Other agencies might be more lenient with lending, but this can often mean a higher interest rate and unclear terms.
SeedCash ensures you know exactly what you’re getting into by talking you through the agreement, loan terms, and offering a fixed interest rate.
We offer unsecured bad credit personal loans in NZ, meaning you don’t have to give us any collateral upfront should your application be approved.
Even if you have bad credit, SeedCash takes your unique personal circumstances into account when making our decision.
You don’t have to feel trapped by bad credit.
While it’s easy to feel restricted by bad credit, SeedCash believes that everyone deserves a chance to improve their financial situation. That’s why we look at more than credit and consider what’s affordable for you when looking at bad credit loans in NZ.
Armed with knowledge, you can now safely apply online with us. Don’t delay; take a step towards securing your financial future today.
Apply online now and get cash on the same day of approval
Contacts
Priding ourselves on excellent customer service, SeedCash is all about open communication. If you have any questions regarding an existing arrangement, questions in general, or would like more information, don’t hesitate to get in touch via phone or email.
Address
- Level 18, Huawei Centre, 120 Albert Street, Auckland Central, Auckland 1010, New Zealand
- PO Box 6620, Victoria Street West, Auckland 1142, New Zealand
- info@seedcash.co.nz – for general enquires
- loan@seedcash.co.nz – for loan processes
- collections@seedcash.co.nz – for loan repayments