Consumer

Consumer - we compare loans

Our site is here to offer New Zealand citizens the place where they can easily compare loans when they need a little extra money. You need to determine what you need the loan to pay for.

Decide how much you need to borrow and how much you can comfortably afford to pay back, you should try to pay back your loan as quickly as you are able to. Understand the terms that are set out in your long or short-term loan contract and look out for associated fees and early exit fees.

Deciding on a secured or an un-secured loan

A secured loan refers to a loan that is secured by an item of value know as collateral. This type of loan is less risky to lenders than unsecured loans as if you don’t repay your loan or stick to the loan terms then your item of collateral will be taken to make up the funds. These items of collateral could include your car, a property that you own or an asset of greater value.

Unsecured loans are not secured by anything so they are a much higher risk for lenders if you have a good credit record a lender may offer you a good interest rate and favourable loan terms. If you have a bad credit record then you may be penalised with a higher interest rate and have stricter loan terms.

Examining the interest rate

The most import thing to consider when applying for a loan is the interest rate that you will be charged. If you are charged a higher interest rate you will end up paying much more for the loan than you originally borrowed.

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You can choose between different interest rates either a fixed interest rate or variable interest rate.

A fixed interest rate will mean that the amount of interest that you are charged will be the same for the duration of the loan agreement.A variable interest rate will fluctuate depending on how the markets perform and you will benefit if the interest rate is lowered.

Supporting documents required to apply for different loan types

To apply for any type of personal loan you will need to supply certain documentation. It is important to have these documents on hand when you apply for the loan.

You will need:

• A copy of your drivers’ licence
• A copy of your passport
• A copy of your ID document or a copy of your birth certificate
• A copy of your latest utility bill
• Proof of income
• Proof that you will be able to repay the loan

In the case of applying for vehicle financing you may be asked to provide additional documentation.

Personal loans versus credit cards

A personal loan can give you access to quick cash when you need it. The interest rate on a personal loan is usually less than the interest rate charged on a credit card, this means that the you will save money if you opt for a personal loan.

Personal loans are long term commitments that need to be entered into carefully after you have competed your research and compared all the offers that are available to you.