If you live in New Zealand, and you’re looking for a personal loan, we have you covered. In choosing a personal loan provider, you have a lot of options, from banks to credit unions and more besides. Just on the bank side of things alone, there are 27 of them in the country — but are they offering you the best loan value in 2022?
How do you pick the best personal loan provider?
There are many things to consider before choosing a personal loan provider, and it all depends on what you need and the budget.
For instance, if you want to purchase a car, then you might go with a longer-term and higher interest rate for it. Whereas, if you need the money for an emergency, then short-term low-interest loans might be your best bet.
Some things to consider before choosing a personal loan provider include:
- Your credit score
- The type of loan you want
- Any restrictions on the loans that will be available to you
- The minimum and maximum loans that are available to you
- The interest rates and APR offered by the different providers
Make a list of potential providers
Before you make a list of New Zealand providers to make a decision, there are some things to consider. The following criteria will help you narrow down your list of potential loan providers.
- What type of personal loan do they offer?
- What is the interest rate?
- What kind of credit score is required?
- How long can you take to repay the loan?
- How much money can you borrow from the company?
Find the most affordable interest rate for your loan
Several factors determine the interest rates that a personal loan company offers. So how do you find the most affordable one? Here are a few things to keep in mind:
- The lender’s credit score requirement, along with your credit score, will typically determine your interest rate.
- The loan amount and repayment term will also affect what you can expect as an interest rate.
- Lenders may charge higher rates for those who have not been employed for over two years or have any bankruptcy filings on their record.
An important part of making a good decision when choosing a personal loan provider is understanding how they deal with defaults and late payments. So make sure you read the small print in full.
Examine the rates of borrowing
Before getting a personal loan, make sure to research the rates of interest from different providers. A personal loan is a type of loan for people or businesses that do not require collateral or property as security. They can be applied online and customised according to the needs of the person.
The interest rates on different types of loans can vary significantly depending on your credit score, your current debt levels, and other factors. For example, lenders may offer favourable rates as an incentive for someone with an excellent credit score. On the other hand, those with poor credit might get an extortionate rate as they will need to borrow more money than those with good credit history.
Ask yourself questions
Finally, before you decide on a personal loan provider, it is a good idea to ask yourself a few questions.
What type of loan do I want? Will my income be enough to sustain the monthly payments? How long will I need the money for? Is there a guarantor necessary for the lender?
Want to know what options you have?