Understanding credit scores
If you need a loan but your credit score isn’t so good, you might think your chances of being approved are low.
Fortunately, there are some lenders that are flexible and understand that there are times when people need a second chance.
This article explores how Auckland Loans helps people with poor credit scores get loans to help them on the path to greater financial freedom.
If you’ve ever had credit of any kind, you will have a credit score.
Your credit score is a record of how you’ve paid your debts in the past. It covers not only loans, but also utilities like phone and electricity bills.
When you apply for a service, like a phone contract or a Buy Now Pay Later account, a credit account is opened, which allows you to pay the company for the service.
Every time you make a payment in full and on time, your credit score goes up a little bit.
On the other hand, if you’re late with your payments or you miss even one, your credit score will go down.
Your credit score is a number between 1 and 1000. A score of 0 is the worst possible score, and 1000 is the best.
According to Credit Simple, most credit scores are between 300 and 850, with a score of more than 500 being considered good. A score less than 300 is considered bad.
How to check your credit score
There are three agencies in New Zealand that provide credit reports: Centrix, Equifax and illion.
To find out what your credit score is, choose an agency and go to their website to request a free report.
Checking your credit report is a really good idea because you might have missed payments or credit accounts you didn’t even know about.
If there’s something in your credit report that’s wrong, you can ask the reporting agency to query it and get it fixed.
What if you have a bad credit score?
If you’ve found out your credit score is poor, don’t panic!
It’s not the end of the world, and the great news is your credit score isn’t set in stone. You can improve it!
The best way to do this is to obtain further credit and make sure you make payments on time and in full.
Over time, your credit score will improve, and you’ll likely find it easier to get credit in the future.
Getting a loan with a bad credit score
There are ways to get a loan if you have a bad credit score.
The first step is to find a lender that’s flexible and understands that people deserve a second chance.
If you’ve previously been turned down by other lenders, Auckland Loans could still help. Our belief in second chances is why we offer Bad Credit Personal Loans, like Bad Credit Debt Consolidation Loans and Bad Credit Car Loans.
The amount you’re approved for depends on your monthly income and financial situation, but we’ll try our best to help.
At Auckland Loans, we’re interested in your story and we want to understand your financial situation.
As part of our easy, user-friendly process, our team gets to know you and what’s changed for you.
We take the time to figure out why you have a bad credit score and do everything we can to help you get a loan you can afford.
Contact our friendly team today to learn more about how we can help.
How Auckland Loans helps people with bad credit
Our loan advisors have countless stories of how they’ve helped people with bad credit get approved for a loan. This is just one of them.
Albin came to Auckland Loans because he needed to buy a new car but had been declined from several lenders because of his bad credit history.
As our advisors reviewed Albin’s application and presented it to several lenders, they found that not every lender had a problem with his credit record.
Different lenders use different credit reporting agencies, so some declined Albin’s application while others approved it.
After we arranged a loan for Albin, his car was waiting for him the next day after a lender approved his loan.
Higher chance of approval
Albin’s story shows how Auckland Loans can help borrowers: we put loan applications in front of multiple lenders, so they have a better chance of getting approved.
Some lenders declined Albin’s application, but others approved it, so we could offer him options.
Auckland Loans makes borrowing easy for our customers by letting them choose from many loan options with just one application.
It’s important to understand that every time you apply for a loan, a credit check is done and recorded on your file.
If you have lots of recent credit checks, this can negatively impact your credit score.
You can avoid this by applying with a loan broker like Auckland Loans, where you only need to make a single loan application.
That’s why borrowing through Auckland Loans is so easy and hassle-free.
You don’t have to fill out any paperwork or attend any appointments – just make one application and let us do the hoop jumping for you!
Need a loan but have bad credit?
Get in touch with Auckland Loans today for a free loan assessment.
