I Need a Bad Credit Payday Loan Today
Bad credit is something not many people enjoy talking about; however, it’s a reality for many Kiwis these days.
Having bad credit may often stop people from being able to access a range of financial and other types of services. For example, the bank may decline a personal or home loan application; a retailer may not approve a hire purchase – these days, even some employers make credit checks, as well as a number of power companies and telecommunication providers.
Credit history helps lenders and service providers determine whether they should lend to the applicant. Having very bad credit can sometimes mean that the borrower wasn’t very good at managing their finances in the past – therefore, their current ability to borrow may be affected. All credit providers have their own list of lending criteria and credit decision metrics they use along with the information on the borrower’s credit file in order to make a lending decision and either approve and decline their application.
Sometimes information on a credit file can be incorrect, or the borrower may have been affected by identity fraud (that happens when someone borrows money fraudulently using another individual’s personal information). It’s important to have a copy of your credit file, so you know exactly what it contains. Some New Zealand companies also provide an alert service, which automatically sends out an email alert when a change occurs on the person’s file.
Overdue accounts, court judgements and bankruptcy are some examples of negative credit types that may affect the ability to borrow.
- Overdue accounts arise when a debt has not been paid within 30 days of the payment date, and the lender has taken some steps to recover the outstanding sum (this remains in the credit report forever);
- Court judgements is when judgement has been obtained against a consumer in the Court (stays on file for 5 years);
- Bankruptcy is the worst type of bad credit. It stops creditors from attempting to collect debts, but it comes with a number of responsibilities and restrictions.
We know that having credit history that is less than perfect can make it harder to apply for credit; that’s why we may be able to help if you are looking for a payday loan with bad credit. We look at people’s current ability to repay, not just the credit issues in the past – as long as you are not currently bankrupt, under a no asset procedure or a summary instalment order. If you have any questions, please do not hesitate to talk to us to today to see how our bad credit cash loan service can help.
Sources: mycreditfile.co.nz, sorted.org.nz