Best Bad Credit Loans 2019

Last updated: May 2019

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Bad Credit Loans

Even if your credit history is a bit chequered, you can still obtain credit without resorting to the dreaded loan sharks. While they may not bother with your credit history, loan sharks will saddle you with crazy interest rates and fees. And woe betide you should you try and default.

There are many kinds of above-board loans you can still access even with your bad credit. You first of all need to establish whether you actually deserve the credit rating you have. Request your credit report and go through it with a fine-tooth comb. You may find that it contains some errors that paint you in a worse light than you deserve.

Depending on which lender you approach, you may find that you still can qualify for a loan even with a less-than-perfect credit report. Find out as much as you can about the different credit providers in New Zealand, comparing their offerings. When you have gathered enough info, go ahead and apply- though be careful to only seek credit from registered lenders. You may be surprised at the responses you get- what you thought is a bad credit rating may not be considered to be so by some lenders.

As you shop around it is important to look at your monthly budget and be sure that the repayments won’t leave you struggling to survive. You may be tempted into taking up more credit if your bad credit loan repayments are too hefty. Plunging yourself into an endless cycle of debt is the last thing you want to do.

Types of loans available to people with bad credit

Soft loans

Typically these are provided by family members or friends and so you stand a higher chance of getting the money from them than other more conventional lenders. This doesn’t mean you should bypass the formalities of borrowing, such as drawing up a loanagreement with all the terms and conditions. Having such a formal agreement in place will make them feel more confident about loaning you the cash.

If your loved ones don’t have enough cash to spot you the loan, they can act as a guarantor for you when approaching a formal lender. Find a friend with a clean credit record and they can co-sign for a loan with a bank or other financial institution.

Individual lender loans

Another option you can consider for bad credit loans is getting a loan from a peer-to-peer lender. There are individuals in New Zealand who offer loans to other individuals at an agreed interest rate. Since they are not like conventional financial institutions, they may overlook some details, including your credit history. Be that as it may, it is good to be sure you can afford the P2P loan before taking it up.

Secured loans

In theory, it should be easy for you to get a loan if you have an asset to offer as security, even if you have poor credit history. With landed property or a vehicle to fall back on, there is less risk to the lender if they give you cash. They can always sell the asset and recover their money if you are unable to repay the loan. Since the risk is lower for the lender, secured loans tend to attract lower interest rates, making them a suitable option for kiwis with a bad credit history. However, like with any other type of loan, it is important to be sure that you are able to make the monthly repayments before signing the offer letter.

Credit Union loans

Another source of affordable credit you can consider if you have a poor credit record is credit unions. They are much more understanding of your personal circumstances than banks and other conventional lenders. Here you can argue out your case and get a loan with favourable conditions that suite your current financial situation.

Here are some places in New Zealand you can still get financing even with a less-than-perfect credit history:

Crester Credit

This company was founded more than 35 years ago in Christchurch with the aim of providing great loan products to Kiwis of all walks. It prides itself in the high percentage of repeat business it gets from its clients. This is down to the highly personalised level of service they offer each customer.

For every issue a customer has, Crester Credit’s team members work around the clock to resolve it until a solution is found. This same personalised approach is used in the setting up of loan repayment terms. After fully taking into consideration the applicant’s circumstances and level of income, they will come up with a repayment structure that works.

The quick turnaround time in loan disbursement is another of Crester Credit’s selling points. They say they will have the money in the applicant’s account less than 24 hours after they gain approval. The approval process itself is done in an hour or less.

Flexible and understanding as Crester Credit is, they will not budge on one thing. All their bad credit loans are secured, meaning applicants have to provide an asset that is at least equivalent to the amount they need in value. The good news is that this lender does not limit themselves to landed property or vehicles when considering collateral. They even accept household appliances and furniture as security.

Handy Cash

HandyCash is focused not only on solving borrowers’ immediate need for cash; they aim to help you fix your financial problems for the long term. Their bad credit loans are structured to prevent a build-up of interest that will be beyond the borrower’s ability to manage.

Run by a management team boasting more than half a century of financial services expertise, HandyCash has a range of loan products that addresses the needs of most Kiwis. They understand that the stains on many New Zealanders’ credit records are not due to bad choices, but circumstances beyond their control. The economy is spiralling out of control; leaving most households unable to meet their monthly expenses on their income.

If you have been turned away by every mainstream bank you have approached because of your bad credit history, try knocking on HandyCash’s door. Or rather, logging onto their websites where you can fill an online application form. They promise that the review of your application will take just a few minutes and that you will have their feedback in a few moments. Within just 24 hours of approval you will have the funds in your account. In addition to this quick process you will have advisors willing to listen to you and guide you every step of the way.

LifeStyle Finance

Lifestyle Finance is a seasoned financial services broker in the New Zealand market. They work hand in hand with the country’s leading lenders to find the most affordable credit for their needs and financial circumstances.

They can help you find a loan even if you have bad credit. However, you need to be able to offer a clear explanation for past defaults to be considered for a Lifestyle Finance loan. If you would like to get the loan without having to shoulder too much in the way of interest, you need to offer an asset as security. It doesn’t matter if the house, land or vehicle doesn’t belong to you. So long as the owner is willing to let it be used as security.

The flexibility Lifestyle Finance guarantees Kiwis is why many of them opt for this broker’s products. You can get flexible terms on your loan, but the fact that repayments are fixed means you can manage them more easily. Many people prefer to set up a direct debit on their account to avoid missing repayments. This is especially critical for those with bad credit records which they wish to make right.

Lifestyle Finance offers New Zealanders fast turnaround times on approvals on disbursement, which is key for loans needed to take care of arising emergencies.