Bad Credit Loans

How do bad credit loans work?

Loans for People with Bad Credit RatingBad or good, what is a credit rating?

Your credit rating or credit score (it’s the same thing) is a number between 0 and 1000. This number shows how good and reliable you are at paying bills and loan repayments. Anything over 500 is considered pretty good, but the closer you are to 1000 the better your credit rating and the more likely you are to be able to negotiate a good lending rate on a loan.

Bad or good, how is a credit rating worked out?

Your credit score comes from your credit report which is a detailed financial history. Your rating or score is made up by taking into account all kinds of things: how often you’ve applied for or been given credit by a bank or lending company and how it was paid off (think to hire purchase agreements, overdrafts, personal loans, credit cards etc.), court judgements, your tenancy record, even if your partner has defaulted on a debt that has your name on it. Bad or good, this information will stay on your credit report for up to 2 years, and any loan defaults can appear for up to 5 years, even if you ended up paying it off.

Bad or good, do you know your credit score?

If you don’t you’re in the majority. Even though this information is available to you most people don’t know it. A website called Credit Simple will tell you for free. They did a bit of research before launching this service and found out only around 13% of New Zealanders have ordered their credit report.

What does it mean to have a bad credit rating?

Having bad credit can affect your whole life. It’ll not only stop you being able to get a personal loan of any size from a bank, but it could also stand in the way of renting or even signing up with an electricity company. It could even affect you overseas. But it’s not all doom and gloom, acquiring and paying back a small, short term loan from Moola can help you improve your credit score.

How can Moola help improve a credit score that's in bad shape?

Used correctly and responsibly, Moola’s short term loans or personal loans for bad credit can help to improve your credit rating. As our personal loans usually have to be repaid within 30 days, successful loan repayments show you can be trusted to repay your financial obligations on time and you get a reputation as a responsible and reliable customer rather than a bad one. That’s how your credit rating slowly improves.

At Moola, we take pride in being a responsible lender. First of all, we’ll start you off with a smaller short term loan to ensure you can manage it. Moving forward after that, for any loan you need we do checks to make sure you’re not taking on something unmanageable by only lending you no more than 30% of your weekly income. After all, no one likes a bad outcome.

So now you know a bit more about credit ratings and Moola’s online loans why don’t you apply for one? It’s so fast and so easy to apply for Moola fast loans online.

Moola is here to help you get a personal loan, despite what your credit profile says. We undertake a comprehensive (yet quick and simple for you) assessment to find the right finance option.

Apply < a href="https://www.moola.nz/instant-loan">Moola Loans