Getting loan ready: when NOT to apply for a personal loan
Here at The Lending People, we love to help our customers make things happen with a personal loan. We love to say yes! We look for the positives of your application (not just your credit rating) to get it across the line. However as responsible lenders, we also need to make sure you can afford repayments. Sometimes, timing can make all the difference, so it’s helpful to know when NOT to apply for a personal loan.
Out of employment
At a minimum you’ll need to be employed part time. We offer some of the most flexible credit criteria in New Zealand but you still need to be able to afford your repayments. We generally find that applications with only WINZ or IRD payments don’t meet affordability requirements. However if you receive WINZ or IRD payments in addition to part time or full time work, we encourage you to apply.
We require stable, consistent income to approve a loan application. Which means you’ll need to be in permanent employment, and outside any trial period. It’s best to wait until you’ve been in your job for 3 months or longer to improve your chances.
Recent payday loans
A responsible lender is required to make sure they know your situation and needs, and needs to ensure you don’t get a loan that you can’t repay. Which is why we need to see bank statements and know details like your job and income. When responsible lenders see payday loans on your bank statements, especially if multiple, this can suggest financial hardship. Because we need to ensure you can afford the loan, it can be hard for us to give approval when there are signs of a recurring payday loan.
Recent gambling transactions
Ongoing or frequent gambling transactions in bank statements suggest increased risk for lenders. If you’re looking for a win (or a loan), the safest bet is to stay away from gambling.
When you’ve applied everywhere else
Each finance application you make creates an enquiry in your credit report. Too many enquiries will negatively impact your credit score. Which is why it’s best not to get application happy. If you’ve previously been declined, check out these tips to spring clean your finances to help your next application.