It’s About To Get Easier To Borrow Money 

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It’s About to Get Easier to Borrow Money. Great News, Right?

Well, that depends on who your lender is.

Before we get into that, though, here’s a quick rundown of the changes the government is making to financial services law.

It’s updating the Credit Contracts and Consumer Finance Act (CCCFA), which governs how people borrow money in New Zealand.

The previous government made some changes to the law that require lenders to put borrowers under more scrutiny before granting loans.

The effect of those changes has been that many people have found it harder to get a loan.

Some people think the changes went over the top. Reports alleged banks were rejecting home loan applicants because of minor frivolous spending, like buying lotto tickets, going out for dinner, or doing some Christmas shopping at Kmart.

The current government is responding to that by promising to do away with the stricter affordability testing rules.

It’s expected this will make it easier for people to borrow money without coming under so much scrutiny.

The CCCFA changes will be effective from 31 of July 2024.

So, that brings us back to our initial question: isn’t that good news?

We believe so, here’s why.

The Commerce and Consumer Affairs Minister Andrew Bayly told RNZ in a recent interview: “It became very difficult for people to borrow $500 to fix their car, forcing them to go to high-interest loan sharks.

The changes would still require lenders to act responsibly, but they would not have to follow a prescriptive, one-size-fits-all process”.

Loan sharks are bad news for borrowers. Anything that makes it easier for them to access fast, low-cost loans they can afford, is good news.

Unfortunately, not all lenders are good lenders.

That’s why news that credit could be easier to obtain needs to come with a warning: be careful who you borrow from.

How to Choose a Good Lender

There are a few things you can look out for when deciding who to borrow money from.

Positive Reviews

Good lenders should have plenty of positive reviews.

If you’re considering a lender, Google them and see what other people think of them.

Loansmart has more than 500 5-star reviews on Google, so clearly our customers like the service they get from us.

Our team genuinely cares about providing smarter loan solutions for our customers.

Check out our reviews to see how we go the extra mile for every single client.

Low Cost Loans

Avoid lenders that charge more than 50% interest. These are known as high-cost loans.

Look for lenders that charge a lot less than this, which ensures you’ll be able to pay off your loan sooner.

A good lender wants to see you succeed, not be trapped in a cycle of debt.

Loansmart specialises in providing low-cost loans with interest rates ranging from 9.95%.

The interest rate you pay on your loan depends on several things, like your credit history, other loans, and income.

Choose a Loan Broker

When you make an application with a loan broker, they put your application in front of several different lenders to get you the best deal.

The best part is, you only have to make one application.

That’s important because if you make too many loan applications in a short period of time, that can negatively affect your credit score.

Plus, it makes it more convenient for you! Loansmart is a smart, fast loan broker that takes the stress out of borrowing.

Our process is really clear and simple. All you have to do is fill out our quick 3-minute online application form and we’ll be in touch to get some more information from you.

Then we assess your application and within 1-2* hours, we’ll present you with some loan options for you to choose from.

Everything’s done online – there’s no need to sign any pesky forms or documents or come into the office in person.

We jump through all the hoops so you don’t have to!

*Subject to responsible lending checks & lending criteria

Choose a Responsible Lender

If you’re going to borrow money, it makes sense to borrow from a company that has your best interest at heart.

But how can you know if your lender is responsible?

One way is to choose one that’s a member of the Financial Services Federation (FSF). Loansmart is, and we’re proud of this accomplishment.

Our affiliation with the FSF means that we adhere to responsible lending practices.

We take a skilled, caring, and diligent approach to lending that protects borrowers’ interests and ensures their financial well-being.

You’ll always get honest and straightforward service from us as a client. When you work with Loansmart, you can trust that we’re acting in your best interests.

Acting according to the strict guidelines and principles set out by the FSF Code of Conduct, we believe that our clients should always be treated fairly.

We accommodate our clients’ needs and preferences with the highest level of integrity.