No Credit Check Loan in NZ
If you have an urgent need of cash due to emergency expenses.
But your poor credit score limits your options while searching for a loan,
you may try applying for a no credit check loan to receive the amount you need quickly.
No Credit Check Loans
No credit check loan means borrowing a small amount of money from a
lender despite of your low credit score to repay in a short time with high interest. The main focus will be on your income, employment status and bank statements instead of your credit history.
To get no credit check loan, you need to provide your personal info, 100 points of identification, internet banking details, employment details and employer contact info. It is controversial that whether taking out a no credit check loan is safe. Actually, it depends. You need to find a reliable lender and choose the right type of loan you need.
It is recommended to improver your credit score and apply for an installment loan instead of applying for a no credit check loan.
Advantages Of No Credit Check Loans
1. There is no need to have a good credit score. Since lenders base their decisions on your monthly income, employment status and bank statements, you will be likely to be approved despite of your poor credit score or damaged credit report.
2. They are fast. You can receive the loan you need within two days.
3. You can use that loan for anything you want including holiday, wedding, funeral, medical or dental expenses.
4. Most lenders do not perform hard credit checks which may damage your credit report.
Disadvantages Of No Credit Check Loans
1. They are extremely expensive. Considering the high risk of being unpaid, lenders often charge sky-high interest rates. There will also be additional fees.
2. The amount you can borrow is limited.
3. You need to meet minimum income requirements.
4. They will not improve your credit score if you achieve to complete your repayments on time. But, if you fail to repay timely, they may damage your credit score.
5. They may cause you fall into a debt trap. If you fail to repay and roll the loan over, you will be charged additional interest and your loan becomes more expensive.
6. There are predatory lenders who may have tricky terms.
7. Secured loans may cause you to lose the possession of your asset when you fail to repay.