1. Home
  2. Our Blogs
  3. Personal Loan Affordability Tips

As a responsible lender, it's our job to make sure you can afford the repayments on any loan you take out with us. We won't let you get in over your head, because that doesn't work for you or for us. But there are a few tools and tips that will help make sure your affordability is in tip top shape before you apply.

Let's take a look…

 

Personal Loan Affordability Tips at a glance

  • Work out what you can comfortably afford before you apply.

  • Our five-question check and loan calculator below can help.

  • To apply, you'll need to be 18 or over, live in New Zealand and have valid photo ID.

  • Offering security, like your car, can strengthen your application.

  • We go through your budget with you before we lend, every time.

Before you borrow: 5 questions to ask yourself

Whatever you're borrowing for, and whenever you're borrowing, these are worth working through first:

  1. What comes in each week? Your take-home pay and any other regular income.

  2. What goes out on bills? Rent or mortgage, power, food, transport, phone: the things you have to pay no matter what.

  3. What are you already paying off? Count everything, including loans, credit cards, buy now pay later and store cards.

  4. How long would you be repaying? A longer loan means smaller repayments, but you'll usually pay more interest overall.

  5. What's the plan for when it's over? If you're borrowing for a holiday, Christmas or a big event, the repayments keep going after it's done. Make sure they still fit in the months after, including the tighter ones like January.

If what's left after the first three doesn't comfortably cover the repayments, it might be worth borrowing a bit less or saving up for a while first.

Now see what the repayments could look like. Try a few different amounts and terms, then check them against what you worked out above.

What we look at when you apply 

Before we lend, we go through your budget with you to make sure the repayments fit. That covers:

  • What you earn each week

  • Your regular bills and living costs

  • Any debts you're already paying off

  • Your credit history

You'll need your bank statements handy, and if you keep a budget that shows where your money goes, bring that along too.

Need a hand putting a budget together?

MoneyTalks has some great free budgeting resources to help you see where your money's going and stay on top of things. And of course, we're here to help too. Just pop into your local branch if that's easier.

Check the basics

There are a few things you'll need before you can apply:

  • You're 18 or over

  • You live in New Zealand

  • You have valid photo ID, such as an NZ driver licence or a Kiwi Access card

You'll find the full details, including what we need if you're not an NZ resident or citizen, on our How to Get a Loan page.

 

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. We don't make a yes or no decision based on your credit score alone, but a healthier score can help your application.

Improving your credit score takes time, but here's where to start:

  • Pay your bills on time, every time. A history of on-time payments helps build a good credit record.

  • Set reminders for your bills so nothing slips through the cracks.

  • Set up automatic payments so you never miss one and fall into arrears.

  • If you're juggling several debts, a debt consolidation loan may make them easier to manage, as long as the one repayment fits your budget. Find out more in our guide to debt consolidation.

 

Security: what it is and how it can help

Security is when you put up something you own, like your car, to secure your loan. We don't always need security, but offering it can strengthen your application. Whether it's right for you depends on your situation, so have a chat with our team.

Planning for something specific?

These guides can help you plan for some of the bigger costs:

Affordability FAQs

How much can I borrow?

You can borrow from $500 to $50,000, over 3 months to 7 years. How much is right for you depends on what you can comfortably repay, which is why we go through your budget with you before we lend. Our loan calculator shows what different amounts could cost.

What do you look at when you check affordability?

We look at what you earn, your regular bills and living costs, any debts you're already paying off, and your credit history. Your bank statements help us see the full picture, so we can make sure the repayments fit comfortably in your budget.

Will a low credit score stop me getting a loan?

Not automatically. Your credit score is one of the things we look at, but we also look at your whole situation, including what you can afford to repay now. Every application is assessed on its own merits.

Apply Now

Apply Now