2. Make sure you qualify
We don’t ask for much when you apply for a loan, but there are a few boxes you’ll need to tick to get your application over the line. While these things don’t necessarily affect your loan affordability, they will be make or break when it comes to your application. Make sure you can tick these off…
- You’re over 18
- You live in NZ
- You have valid photo ID
- You can afford the repayments (check out our loan affordability calculator for help!)
3. Understand your current financial situation
Before you apply for your personal loan, it pays to know and understand your current financial situation. Do you know how much money you make each week and what debt you currently have? These are things we’ll ask you so we can work out if you can afford your loan repayments. You’ll also need to have your bank statements handy and if you have a budget that shows where all your money is going too.
Need help creating a budget? Our mates over at MoneyTalks have some cool budget resources that will help you understand where all your money is going and how to stay on top of your finances. Check them out. And, of course, we are here to help too – just pop into your local branch if it's easier.
4. Keep your credit score in check
Your credit score is a rating that tells businesses (like us) how likely you are to pay your bills on time. While we don’t make a yes or no decision based solely on your credit score, having a higher credit score can help your application succeed.
Improving your credit score does take time but a few ways you start working on it today are:
- Do you pay for your bills in cash? Swapping to paying by direct debit can help you start to build up a credit history.
- Set reminders for your bills to make sure you pay them on time.
- Set up an automatic payment for bills so you never miss a payment and go into arrears.
- If you have a low credit score, a debt consolidation loan can help you roll up your debt into one easy to manage loan. Find out more about a debt consolidation loan.
5. Security to boost your loan affordability
Security is when you provide an asset like a car or household items to secure the loan. At Instant Finance, we don’t always require security for a loan, but it can help get your application over the line. It also gives us confidence that you’ll make your repayments and could mean you can borrow a larger sum (provided you can still make the repayments, of course!).
Want to know more about adding security to your loan? Chat to our friendly team.