Most likely, if you’re searching for “instant loans for fair credit”, you’re worried that your credit score isn’t superb.
It’s a common misconception that fair or poor credit scores will make it harder to get a personal loan. Some fair-credit borrowers try to hide their score from lenders because they’re worried about getting rejected.
The good news is that If you have fair credit, you can get a loan from a responsible lender, so keep reading to find out how.
Credit scores: what you need to know
According to your past credit activity, your credit score tells you how good you are at handling money.
You’ve got a credit score if you’ve ever borrowed money in New Zealand, whether you bought a car, got a credit card, or paid your power bill.
Using details from your credit history, credit agencies look at how well you pay off loans, use credit cards, and settle bills.
Low scores usually mean you’ve had trouble keeping up with payments or you’ve got a lot of debt compared to what you make.
You might have a hard time getting loans or credit cards because of this.
You can have a credit score from 0 to 1000, where 0 is the worst and 1000 is the best.
Generally, people have a credit score between 300 and 850, with a score below 300 considered bad.
“Fair” credit scores are between 580 and 669, while “good” credit scores are between 670 and 739.
Interest rates and your credit score
Borrowers with poor credit scores typically have higher interest rates because lenders see them as more risky borrowers.
However, what if your credit score is fair rather than bad?
A fair credit score is an indication that there has been a history of missed payments, maxing out credit cards, or other credit issues, but it’s also an indication that you have potential.
Personal loan providers recognize that fair credit borrowers are not outright risky; instead, they may have faced temporary financial challenges that impacted their credit scores.
You can make more informed borrowing decisions if you know where you stand.
You can find out your credit score by contacting Centrix, Equifax or illion, three agencies that provide credit reports in New Zealand.
The importance of improving your credit score
Luckily, credit scores aren’t fixed. They can be improved!
Your credit score increases when you pay your bills on time, or take out credit and make timely payments.
You will be able to improve your situation if you can make regular loan payments, even if your credit score is poor.
Choosing the right lender
It’s essential to find a lender that will help you succeed even if you have a fair credit score or wish to improve it.
At Auckland Loans, we care deeply about our customers and want to see them succeed, unlike some lenders who are motivated only by profit.
Every day we help people with poor credit history find a great deal, regardless of their credit score.
How do we do this?
Understanding the financial situation of our customers is the first step we take.
Our chances of getting an approval are good if they are able to explain their financial difficulties and have a regular income to pay off the loan.
We believe that people deserve a second chance when they make mistakes.
It’s for this reason that we go to bat for people with bad credit histories.
How much can you borrow?
Auckland Loans offers unsecured loans up to $75,000.
One of the best things about an unsecured loan is you don’t have to provide any security against the loan.
People with fair credit can sometimes get secured loans instead, which helps the lender offset some of the risk.
You can borrow up to $150,000 with our secured loans.
Use our free loan calculator to see how much you could borrow.
Why you should use a loan broker
As an online loan broker, Auckland Loans finds you the best affordable loans based on your financial situation.
To find our customers the best deal with competitive interest rates, we use our network of low-cost lenders.
Just one application gives you access to multiple lenders. Our application takes just a few minutes, and more lenders means more chances of approval!
It is also important to avoid making multiple loan applications in a short period of time, as this can negatively affect your credit score.
Getting a loan with Auckland Loans is as easy as filling out one short online application.
We can usually get your loan approved within 1-2 hours*, and get the money into your account the same day or next, depending on the time of day you apply.
*Subject to responsible lending criteria.
Tailored solutions
Auckland Loans provides access to lending that’s personalised to you.
- Personal loans
- Unsecured car loans
- Debt consolidation loans
- Wedding loans
- Home renovation loans
- Fast cash loans
We offer personalised rates based on your situation, so you’re always getting the best deal.
Our advantage over traditional lenders is that we can offer personalised solutions, not a one-size-fits-all approach that might cost you more.
Our loan terms are flexible and we offer other loan options to make monthly repayments easier.
Your loan can be structured for you to be able to make monthly repayments comfortably, whether it’s for 6 months or 7 years.
Find out how we can help by getting in touch with our friendly team today.
*Subject to responsible lending criteria.
