Bad Credit Loans
Loans without security is complicated and if you have bad credit then it becomes much harder but not impossible. We have helped kiwis get unsecured bad credit loans in New Zealand. If you know the basics and know what to look out for then it will be much easier to get approved for unsecured poor credit loan. Lets look at the basics of unsecured loans
What is an unsecured bad credit loan ?
Unsecured bad credit loans are available for people who need larger amounts of money than they can get from a payday loan but don’t want the hassle of securing their loan with collateral. As the name suggests, these unsecured bad credit loans do not require any collateral to be pledged against the loan amount. People with good or bad credit scores can apply for these loans and expect to receive funds in as little as 24 hours if they’re approved.
Different types of unsecured bad credit loans
There are many types of unsecured bad credit loans available to those with poor credit. Here are a few of the most common:
Personal Loans: Personal loans are typically unsecured, meaning they don’t require collateral. This makes them a good option for those with bad credit, as they may not be able to qualify for a secured loan. Personal loans can be used for a variety of purposes, such as consolidating debt, paying for unexpected expenses, or financing a large purchase.
Credit Cards: Credit cards are another type of unsecured loan available to those with bad credit. While they typically have higher interest rates than other types of loans, they can be a good option for those who need access to quick cash. Credit cards can be used for everyday purchases or for larger expenses, such as travel or emergencies.
Payday Loans: Payday loans are a type of unsecured loan that is typically used for short-term expenses.
Rates for unsecured bad credit loans
These loans usually come with higher interest rates than secured loans because they are riskier for lenders, who do not have anything they can repossess if you default on your payments.
The loan interest rates range is between 14.95% and a maximum of 25.95% for unsecured bad credit loans in New Zealand. The main advantage of unsecured bad credit loans is that people with no assets can still borrow money and build up their credit rating by making regular repayments.
Benefits of unsecured bad credit loans
There are many benefits to unsecured bad credit loans, and if you are considering this type of loan, then you should know about them. Here are some of the top benefits:
You can get the money you need quickly : If you need money for an emergency, then you can get it quickly with an unsecured bad credit loan. This type of loan can be approved within 24 hours, and you can get the money in your account within a few days.
You don’t need collateral : With an unsecured bad credit loan, you don’t need to put up any collateral, such as your home or car. This means that you can get the loan even if you don’t have any assets to use as collateral.
- Debt consolidation is one of the main reasons people take out unsecured bad credit loans. By consolidating multiple debts into one loan with a lower interest rate, individuals can save a significant amount of money on their monthly payments. This can help to free up extra money each month to use towards other expenses or debts.
- Improve an individual’s credit score : It can help to improve an individual’s credit score. By making on-time payments each month, individuals can gradually improve their credit score over time. This can eventually open up the door to better interest rates and loan terms in the future.
Risk with unsecured bad credit loans
There are a number of risks associated with unsecured bad credit loans.
Higher Interest Rates : One of the biggest risks is that you may end up paying a much higher interest rate than you would if you had good credit. This means that you could ultimately end up paying back far more money than you originally borrowed. Interest rates can range anywhere from 15% to 29% and even higher in some cases.
Legal Action : If you default on your loan payments, your lender could sue you or take other legal action against you.
Shorter Repayment Terms : Unsecured bad credit loans typically have shorter repayment terms than secured loans, which means that you’ll need to pay them back more quickly. This can be difficult if you’re already struggling to make ends meet.
- Damage To Credit Score : There is also the risk that you will not be able to repay the loan. This can lead to default, which will damage your credit score and make it even harder to get future loans.
Need Help with Bad Credit Loans ?
Let us help you get bad credit loans in New Zealand. Be our next success story !