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If you’ve been turned down for a loan because of bad credit, you’re not alone — and you still have options.

At Instant Finance, we understand that life happens. Whether it’s for car repairs, home essentials, or catching up on bills, our team is here to help everyday Kiwis move forward, even if your credit history isn’t perfect.

If you’re struggling with previous bad credit or have got yourself in over your head when it comes to your finances, getting a personal loan can seem out of reach. Many loan providers may turn you away for a personal loan based just on your bad credit history, but we’re not like the others! Take a look at how we can help when a bad credit score haunts you.

Firstly, what’s a bad credit score?

A credit score or rating is a number between 0 and 1,000 that tells businesses how likely you are to pay your bills or your loan repayments on time. It’s calculated based on a range of things like if your bills are overdue, the number of bank accounts you have, credit cards and other levels of debt. The higher the score, the better your rating is, and if your credit score is low, it could affect your chances of a loan provider giving you a personal loan.

Getting a personal loan with bad credit

At Instant Finance we believe that everyone deserves the chance to remedy their financial situation and be given the opportunity to get back on their feet financially. We know it can be disheartening to be turned away from mainstream lenders and other loan providers if you have a bad credit score or have defaulted on payments before, and when you need cash fast, having an extra layer of stress is the last thing you need! That’s why we do things differently.

Don't let your credit score deter you.

Apply now!

Do we look at your credit score here at Instant Finance?

To give everyone the helping hand they need, we don’t rely on credit scores to work out who gets a loan approved and who doesn’t. In fact, we assess each and every application on a case-by-case basis. What this means for you is that if you do have a bad credit score or have defaulted on payments in the past, it’s not all over. We look at your situation independently to see how we can work with you and help. Your credit score is just one piece of the puzzle and we make sure we get a good look at the full picture before making decisions. This includes taking into account your job, income, spending habits and other debts you may have.

From there, we can work out how best to help you and make recommendations for your personal situation. We might recommend a debt consolidation loan or a small loan to start with and our helpful team can work with you to figure out a payment plan for the future all while maintaining our obligation to be a Responsible Lender. In short, it DOESN'T mean bad credit = loan disapproved here at Instant Finance. 

If this sounds like you and you need help with defaulted payments, contact us for a chat.

Maximising your chance to secure a personal loan with bad credit

  1. Paying your bills on time will start to improve your credit score straight away, so if you can, set up an automatic payment to your provider as soon as possible. Make sure you create a budget that considers this automatic payment so they don’t default each cycle!
  2. A debt consolidation loan will allow you to wrap up all your debt or defaulted payments into one easy to manage loan. As soon as those defaults are wiped, you’ll automatically be on your way to improving your credit score. Check out the other ways a debt consolidation loan can help you.
  3. Remember improving your credit score isn’t set and forget. Like working on your health, it’s good to keep on top of it. Set some time aside fortnightly to review your finances, budget and any repayments coming up so you don’t miss any. If you want to learn more about credit scores and reports check out this report. 

Don't let your credit score deter you.

Apply now!

Having bad credit doesn’t mean your financial story is over. With Instant Finance, it could be the start of a better chapter.

Loan terms

Our minimum loan term is 3 months, and our maximum loan period is typically 7 years.

Interest rates

Instant Finance provides loans at an annual interest rate from 9.95% to 29.95% per annum.
The rate that applies to your loan will be based on a range of factors including your circumstances, credit history with us or others, the security you can provide and the loan amount.

Once set, the interest rate is fixed for the term of your loan.

Default interest rate

If you get behind in your loan repayments, then we may charge a default interest rate on any overdue loan payments, while they are unpaid.

For our Personal Loan Product, the Default rate that we charge is 10% per annum above the Interest Rate that normally applies to your loan.

For our Consumer Loan Product, the Default rate that we charge is 10% per annum.

On this basis the maximum annual interest rate charged would be 39.95%

Loan fees

Some or all of the following fees are payable at loan commencement, these may be added to the amount you borrow:
Loan establishment fee
A one-off set up fee for your loan.

From $100 to $220 depending on amount of new money borrowed.

Digital ID Verification Fee
A per verification charge through a 3rd party where we meet face to face

$2.55 per person

Digital & Biometric ID Verification Fee
A per verification charge through a 3rd party where the loan is transacted remotely.

$7.70 per person

Security Registration fees
For secured loans where we register an interest in Personal Property items provided as security

$8.05

Administration Fee
A fee payable on each instalment due date of your loan

$3 (per instalment)

Credit and Default fees
Default or other fees that can arise during the course of a loan are shown in our full fee schedule.

Loan Example:

The amount repayable of your loan is made up of your interest rate, plus fees. For example, if borrowing $10,000 repayable over 3 years at an interest rate of 29.95% you would be required to make 156 weekly instalments of $102.54. This repayment is made up of interest, an establishment fee of $220, an ID verification fee of $7.70 and an administration fee of $3.00 per instalment.
Total interest would be $5,300.54 with total fees of $695.7 making the total payable over the full term $15,996.24.