Payday Loans – Jacaranda NZ Investigates!
What Are Payday Loan?
Payday loans, what are they? We can understand how a payday loan could be mistaken for a personal loan. A traditional payday loan is not a personal loan. A payday loan is simply an amount of cash that is lent on the basis that it will be repaid when the borrower receives their next paycheck. Payday loans are usually for a smaller amount of cash and are usually set at a very high-interest rate.
Once you are approved for a payday loan you will receive the cash straight away. This might sound very convenient in theory but Jacaranda NZ recommends you keep your wits about you. Payday loans are notorious for being extremely pricey to repay. It is very important to do your research in order to determine what is best for your individual financial circumstances.
Payday Loans Vs. Personal Loans
So, what is the difference between a payday loan and a personal loan? A personal loan is a fixed amount of cash that is borrowed at a fixed rate over a fixed period of time. Personal loans can be accessed from traditional lenders such as banks or credit unions, but, can also be accessed easily from online lenders.
A personal loan can be secured or unsecured. A secured personal loan means that collateral must be attached as a form of ‘insurance’ on the loan. An unsecured loan, however, does not require collateral as security.
When compared to a personal loan, a payday loan could be considered a higher risk. A payday loan is an unsecured loan that is usually set at a considerably higher rate of interest than a personal loan. The key difference between a payday and personal loan is the fact that a payday loan must be fully repaid when the borrower receives their next paycheck.
Unfortunately, there are a number of payday loan providers out there who take advantage of individuals in financial hardship. Bad credit ratings and the need for very quick cash are usually the reasons why an individual will apply for a payday loan. It is very important for borrowers to do their research before agreeing to a payday loan.
Can I Get A Payday Loan No Credit Check?
It is entirely dependent on what type of lender a borrower seeks their payday loan through. A lot of payday loan lenders do not operate in accordance with the policies associated with fair lending. What does that mean? Basically, they do not conduct the necessary checks for responsible lending. This may seem like a win if your credit score is less than fantastic, but, it is important to remember that you could be getting yourself into debt. Lenders who abide by New Zealand’s code of responsible lending will conduct credit score checks to ensure the loan is not going to cause further financial hardship.
Are Payday Loans A Good Option For Me?
Every individual’s financial circumstances are different. Sometimes we all need fast cash. Whether or not payday loans are right for you can only be determined by assessing your personal financial situation. It is important to consider whether you’re going to be able to repay the payday loan comfortably when your next paycheck comes in. It is essential to ensure you are aware of the fees and charges associated with the payday loan you are applying for. It’s important to remember that fees and charges could make the repayments on a payday loan extremely inflated.
Is A Personal Loan A Good Alternative?
Yes! Many Kiwi’s make the mistake of thinking that a personal loan is unattainable if they have a bad credit score or are receiving Government benefits. When you apply with Jacaranda NZ we look for open-minded lenders. What does that mean? Jacaranda NZ partners with lenders who have a fresh view on loan assessments. We don’t disregard applicants who apply with poor credit scores or may have experienced financial hardship.
Lenders will look at factors such as income, spending habits and pre-existing financial commitments in order to assess whether you will be able to make the repayments on a personal loan. At Jacaranda NZ, we recommend you let us see what our lenders can do for you before applying for a payday loan!
What Obligations Do Responsible Lenders Have?
Before you apply for a payday loan it is important to assess your options. As we’ve mentioned, a personal loan is accessible to a wide variety of applicants this day and age. Turning to a responsible lender could be the best option for you in the long run. Responsible lenders have the following obligations to you as a consumer:
- They must make reasonable inquiries into consumers requirements and objectives for a loan;
- Responsible lenders must make a reasonable enquiry into a consumer’s current financial circumstances;
- They must take reasonable steps to verify the consumer’s financial situation;
- All responsible lenders must assess whether a consumer will be able to meet their obligation under a proposed credit contract without ‘substantial hardship’.
It is important to remember that these rules and regulations are put in place to protect vulnerable borrowers from untrustworthy lenders. So, if you’re considering a payday loan it is important to keep this in mind.
Jacaranda NZ: Who Are We?
Jacaranda NZ is the trusted name in lender finding. We do not provide payday loans. We partner with lenders who abide strictly by the code of responsible lending. Our lenders conduct all the necessary check for fair and reasonable personal loans. That does not mean, however, that poor credit will hold you back from approval. Our partner lenders take a realistic look at your current financial circumstances. They want to see how you are going to repay your loan so if they can see you have made a considerable effort to reconcile bad credit you could be eligible for a personal loan.
The best part is Jacaranda NZ is cutting wait times. Our application process is 100% online. That means you can apply wherever you are and whenever you like. If you submit an application during business hours we could have an outcome for you in just 60 minutes. A personal loan could be a safe and reliable alternative to a payday loan. An application will cost you nothing at all and can rest easy knowing our lenders will conduct a responsible assessment.
Who Can Apply?
If you’re ready for Jacaranda NZ to help you find a reliable and fair personal loan then here are the criteria you’ll need to meet:
- Applicants must have an active mobile phone number and email address;
- You must have internet banking set up;
- All applicants must be over the age of 18;
- You have had a regular income for the last 3-months into a personal bank account;
- You must be able to prove you’re an Australian citizen or permanent resident.
At Jacaranda NZ, we like to keep things as simple as possible. We are proud to be providing Kiwi’s with a fair go at a responsible personal loan.
What Documents Will I Need To Provide?
- In terms of documentation for a personal loan, our lending partners only require the basics. Here’s what you’ll need to have handy:
- Your basic personal details (name, D.O.B etc);
- Internet Banking Details (so we can securely access read-only copies of your bank statements);
- You will need to provide us with the reason you are applying for a loan;
- Your MyGov details (if you receive Centrelink or Government benefits);
- Employment details and contact info of your workplace (we may need to get in contact in order to verify your employment status);
- All applicants must be able to prove they are either Australian citizens or permanent residents.
Can I Get An Instant Loan?
Have you been googling ‘credit check loans online instant approval’ or ‘quick payday loans online’? As we have mentioned, at Jacaranda NZ we do not offer payday loans however our lenders do their best to get back to you with an outcome very quickly. We do not claim to match you with a lender who provides instant loans but we can match you with a lender who can get your cash very quickly if you apply during business hours.
It is important to remember that lenders that do claim to provide instant loans probably do not comply with the checks required to comply with the code of responsible lending. Remember to do your homework when it comes to these types of lenders!
How Does It Work?
Wondering how the application process works? The good news is there are no paper forms or long waiting periods. At Jacaranda NZ, we cut straight to the chase. We’ll submit your application to a variety of lenders and do our best to find a match. Here’s how you could get started today:
Submit Your Application
Our application is super simple and takes only minutes to complete. Just get comfortable on the couch, grab a drink and start filling the application. You can get an idea of what a personal loan might cost by using our calculator. Adjust the slider according to the amount you want to borrow and how long it’ll take for you to repay the money.
We Evaluate the Application
Once you hit the submit button for your application, it lands in the assessment queue for one of our application assessment specialists. The specialist will quickly process your application to see if there’s a lender who’s suitable for you.
We Locate A Lender
We get back to you as soon as your application has been assessed. Stay close to your device because we process applications fast. You may get an outcome on your application from the lender within 60 minutes. However, approval times may vary depending on your application.
Why Jacaranda Finance NZ?
You might be wondering why you should use our lender-finding service for a personal loan. There are many reasons why you should leave the job of finding a personal loan to us. But, we don’t want to brag, so we’ll mention just a few of them:
We know time is of the essence and you hate waiting for days to hear back from lenders. That’s why we process your application fast and connect you with lenders who value your time. Our lenders may provide you with an outcome within 60 minutes (during normal business hours).
We are 100% online which means you can complete and submit an application from the comfort of your home. All you need is a laptop or mobile phone and an internet connection.
Lender Finding Experts
We have a strong network of lenders, which is why we are good at finding the best personal loan lenders for you. If you’re hunting for a personal loan in New Zealand, we may be able to help you out.
Bad Credit Assistance
We believe that everyone deserves a second chance. That’s why we work with lenders who can approve people with bad credit.
We don’t hide anything from you. Everything is put out in the open and we maintain transparency in our services.
Excellent Customer Service
Our customer support representatives are ready to reply to your queries and solve your problems.