Been Searching for ‘Cash Loans For Unemployed No Credit Checks NZ’? Here’s What You Need to Know
Cash Loans for the unemployed with no credit checks in NZ
It’s a double whammy when you are unemployed and forced to confront a financial emergency. Perhaps you don’t have a regular income to fall back on when you’re hit with a sudden urgent repair or a medical expense. Sourcing a credit lifeline may be the only option you can bank on to meet your needs. A quick personal loan is a worthy option to consider. Yet, if you’ve been googling ‘cash loans for unemployed no credit checks NZ’ then you’ve probably noticed how tricky it can be to find a suitable lender.
Lenders are known to favour those with a regular income as it ensures they are capable of repaying their loan. If you are unemployed, you may subsequently struggle to find a lender capable of giving you approval. Fortunately, this doesn’t mean all doors for getting a personal loan are closed for you. Here at Jacaranda Finance NZ, we could help you find an online lender capable of offering you the finance you need, when you need it. So, let’s dive into the subject of credit checks and what lending options could be available to you if you’re unemployed.
Secured vs. Unsecured loans for unemployed applicants
If you’ve been searching for ‘cash loans for unemployed no credit checks NZ’ then you need to understand the difference between secured and unsecured loans. Collateral is an ideal solution to get quick cash loans when unemployed. However, there might be situations where you may not be willing to pledge your property or it is already guaranteed against another loan. In these cases, you still have the option to seek an unsecured loan. Lenders approve unsecured loan applications based on your financial profile and track record in repaying previous loans. Lenders do this by running a ‘credit check’ on your financial history and viewing your credit report.
Looking for Unsecured Bad Credit Loans in NZ? We Could Help!
What is a credit check?
A credit check is when a lender views your credit report to evaluate your suitability for a loan or verify your financial behaviour. They can view these reports via the following credit reporting companies:
Credit reporting companies use complex algorithms to fetch your data from different financial and utility companies you have (or had) accounts with and assign you a score that reflects your history of repayments.
The majority of lenders perform a credit check to find out your suitability for a loan. As soon as a credit check request is made, algorithms draw data regarding your loan and repayment history from various companies and agencies. Based on the analysis of your past credit data, you are assigned a numerical credit score. A good credit score indicates you are in a comfortable position to repay the credit. A bad credit score shows you have a history of irregular loan repayments or defaults, indicating the potential likelihood of bad debt.
Are credit checks a good idea?
A credit check is a good thing and can help in getting a personal loan. If you are unemployed but have a good credit score, you have a higher chance of finding an easier loan. In the absence of any collateral, it is your credit reputation that matters for a lender in approving your loan application.
Banks, credit providers, phone companies and utility providers may all use credit checks to establish if you are eligible for their products/services. Even some employers may do a credit check to establish your credibility.
There are two types of credit checks – hard and soft. A hard credit check refers to digging deep into your credit history. When you apply for a loan, the lender does an extensive and deeper search for your financial associations. On the other hand, a soft credit check refers to a superficial search of the credit score without any extensive examination. Usually, employers do a soft check.
Hard credit checks are recorded on the credit report history and impact your rating. Too many of these checks indicate you are desperate for loans. So it’s best to keep this in mind when applying for a loan. Any soft checks or credit score searches done by you personally will not impact your credit history in any way as they won’t be recorded.
Can I avoid hard credit checks?
You can avoid hard checks by limiting your loan applications. To achieve this, you have two options. Either apply only where you have a higher chance of loan approval or apply through lender-finding services.
Jacaranda Finance NZ is a lender-finding service which can help you find a lender willing to give you a fair assessment. While we can’t guarantee we’ll be able to find you a match, we could help you find cash loans for the unemployed with no credit checks in NZ. All it takes is one application, so you can avoid multiple hard checks of your credit score.
Why does my credit score matter?
Credit scores matter a lot. Your credit score is a sign of your financial health and the most important tool to appraise your creditworthiness. A numerical expression, it shows how many credit accounts you have or had and how you are handling your loan accounts. A credit check enables a lender to assess the risk of bad debt if your loan application is approved. This plays a role in their fixing of the loan amount, interest rates and terms of the credit.
Apart from lenders, your credit score guides mobile phone service providers, insurers, government agencies and even those renting properties, who view your creditworthiness as a factor in having a financial relationship with you. Here is why your credit score matters even if you are able to access cash loans for the unemployed with no credit checks in NZ:
- Banks, financial companies and even credit card providers evaluate your credit score to assess the financial risk and potential of bad debts.
- For lenders, it is a determining factor to fix loan limits and interest rates.
- Credit score checking has become an integral part of the hiring process in New Zealand.
- Mobile service providers view credit checks as a prerequisite for beneficiaries getting deals and plans.
- More than half of landlords in the country view the credit score as a factor in accepting tenants and seeking deposits.
- Even car insurance providers fix the rate of premium based on credit scores.
- It also matters to buy-now-pay-later service providers.
What is a bad credit score in New Zealand?
A credit score below 450 is considered a bad credit score in New Zealand. The country has three agencies that deal with credit ratings: Centrix, Iillion and Equifax. Each has its own rating reflected in a number. Most lenders are comfortable to dole out loans to those having a credit rating ranging from 400 to 600.
While any score above 600 is categorised as very good, a score of less than 500 continues to attract scrutiny for missed or late payments. Anything below 300 is a clear statement of defaults and the loan application may be rejected by many. Still, you have a chance of getting a loan from some online lenders.
How do I check if I have bad credit?
To know if you have a bad credit score, you need to know your credit score first. Credit rating agencies offer different numerical numbers to indicate individual credit scores. A credit score above 600 is very good, between 500 and 600 is good and less than 500 but more than 450 is average. Anything below that is considered bad.
Here are a few other possible signs indicating that you have a bad credit score.
- Your application for a credit card or loan is rejected.
- You are denied access to your account with a lender.
- The credit limit on your account or credit card is lowered.
- You get subprime credit offers.
- Your utility provider seeks a deposit against your account.
- You get calls from debt collectors.
- You are getting fewer job offers.
The only way to know if you have a good or bad credit score is to view your credit report from one of the credit rating bureaus. Centrix, Iillion and Equifax, who run extensive surveillance and data gathering from different sources to compile credit details of individuals. If you have signed for regular credit rating info from them, it is easy to know your score on a regular basis. Otherwise, you have to apply to know it.
How can I improve my credit score?
With proper financial planning and attention to essential factors, you can improve your credit score. Your credit utilisation ratio and repayment history contribute to 70% of your credit score. By managing them you can increase your credit rating fast and positively. Here is a list of things you should do to improve your credit score:
- Ensure you pay utility and credit card bills by the due date.
- Stick to the repayment schedule of any loan you have. Avoid delaying, missing payments or defaulting.
- Keep your debt-to-income ratio low. Try to remain as debt-free as possible.
- Ensure your credit card debt balance remains low.
- Avoid pre-approving loans. Open a credit account only when required.
- Don’t surrender unused credit cards if there is no additional fee.
- Have minimal credit cards unless you need too many.
- File a dispute as soon as you notice any inaccuracies in your credit accounts or reports.
- Consolidate your debt.
You should remember that there is no quick fix for improving a bad credit score. Though you may be able to find lenders that offer ‘cash loans for unemployed no credit checks NZ’ improving your score is indispensable for your future financial needs.
Can I get a no credit check loan in New Zealand?
Most lenders will conduct a credit check in line with their responsible lending practices. However, some do offer no credit check cash loans for unemployed applicants in NZ. If they do, you may have to pay a higher interest rate because of the increased credit risk to the lender. Ultimately it comes down to how much you end up borrowing and other terms of your loan.
Can I get a loan without proof of income?
A regular source of income is just one of many eligibility criteria to apply for a loan. There are other norms and conditions that may improve your chances of approval with individual lenders. Even if you are unemployed, you can pledge your assets as a guarantee to secure personal credits. If you receive government benefits, you may also be able to use this as an alternative income source. It falls to the individual lender as to what they deem acceptable proof of income.
Can I borrow money if I am unemployed?
Yes, it is possible to get a loan even if you are unemployed. All that you need is to apply online through lender-finding services, such as Jacaranda Finance NZ. We can help borrowers find cash loans if they are unemployed and on government benefits. Though most lenders we partner with conduct a credit check, they may still approve you for a loan based on other factors. There are many in our vast network of affiliated lenders who look beyond your credit history and job status.
See how we can help today!
If you’ve been googling ‘cash loans for unemployed no credit checks NZ’ stop your searching and see how we could help you today! Our application process is quick and saves you from multiple hard credit checks. So, why wait any longer? Submit your application with us and we could get you connected to a suitable lender in no time.