If you’ve ever worried that your not-so-good credit history will stop you from getting a loan, you’re not alone. Many Kiwis are in the same boat – 12% in fact, according to the latest Centrix Credit Report.
Maybe you’ve missed a couple of payments in the past, had a default show up on your record, or you simply don’t have much credit history at all. Whatever the reason, it doesn’t mean you can’t borrow money. The good news is that there are still options available for people looking for loans with not-so-good credit.
What Does Not So Good Credit Mean?
Having not-so-good credit doesn’t make you a bad borrower. It simply means that from a lender’s perspective, you may seem like more of a risk compared to someone with a sparkling credit history. This could be due to late bill payments, loan defaults, or even applying for lots of credit in a short space of time. Sometimes, it’s just that you haven’t borrowed before, so there’s little for lenders to go on. If you are in the ‘Fair’ range, you’re what’s deemed ‘Not so good’.
Check out this article on credit scores, which explains the different rankings from ‘Excellent’ through to ‘Poor’.
Here’s a breakdown of what each ranking means:
- Excellent (800–1,000): Highly likely to be approved for credit with the best rates.
- Very Good (700–799): Lenders view you as a reliable borrower.
- Average (500–699): Access to standard loan terms across various financial products.
- Fair (300–499): May encounter higher interest rates and difficulty getting approved.
- Poor (below 300): Struggle to secure credit—loans or credit cards may be out of reach.
Can You Still Get Loans for Not So Good Credit?
Yes, you can! At Loansmart, we don’t just look at your credit score – we look at the bigger picture. While your history is part of the process, what really matters to us is your current situation. Things like your income, your regular expenses, and whether the repayments will be affordable for you right now.
One of the ways we help make repayments more manageable is through debt consolidation. By rolling high-interest loans into a lower-interest loan, and spreading repayments over a longer term, we can reduce what you’re paying each week. This not only eases financial pressure, but also improves your affordability (your ability to comfortably meet repayments) — the key factor lenders look at when approving a loan.
Take Emma, for example. She had fallen behind on her mortgage payments and was feeling the pressure. We stepped in, cleared her arrears, and restructured her loan to bring the repayments right down — giving her breathing room and peace of mind. Read Emma’s story here.
Then there’s Sophie. She’d already been declined by other lenders, but we were able to help. Not only did she receive an extra $3,000 she really needed, but her weekly repayments dropped from $400 to $250. That’s a $150 saving every week, which made a huge difference to her family’s budget.
This is what we love to do at Loansmart — helping Kiwis get smarter loans, faster.
Things to Keep in Mind
Because these types of loans are considered a little higher risk, the interest rates can sometimes be higher than what you’d see with excellent credit. The good news is, in most cases, we’re actually able to secure lower rates than what people are already paying on their existing loans. That means even if your credit isn’t perfect, your new loan can still save you money.
Approval times can also vary. Sometimes it takes a little longer if your credit history is less than stellar, but with access to 11 different lenders, we have plenty of options to work with. It all comes down to how we position your application — and that’s where our experience really makes a difference.
How to Improve Your Chances
The best tip is to get in touch early. Don’t wait until you’ve missed multiple payments – reach out before things get too far behind. The more repayments you miss, the more your credit score will be affected, making it harder to secure the best deal.
Another important tip is to avoid applying with too many lenders at once. Each application leaves a mark on your credit file, and too many in a short space of time can drag your score down. By coming straight to us, we’ll manage the process and approach the right lenders on your behalf, giving you the best chance of approval without the extra stress.
Rebuilding Your Not So Good Credit Score
One of the benefits of getting a more manageable loan, with lower repayments, is that you’ll be able to repay it on time — is that it can actually help rebuild your credit score. Every payment you make on time adds to your credit history, showing future lenders that you’re reliable. So, not only can you access the money you need now, but you can also set yourself up for better borrowing opportunities down the track. You can find more tips to rebuild your credit score in this article, How to Increase Credit Score in 6 Months.
If you’ve got not-so-good credit, don’t let it put you off applying for a loan. At Loansmart, we look at the bigger picture, not just your past mistakes. We’ll work with you to find a loan that fits your budget and helps you move forward.
Apply online today and find out how easy it can be to get started with Loansmart. Our team is here to help you every step of the way.
*Subject to responsible lending criteria.
Loans for Not So Good Credit FAQs
Yes, you can. Having not-so-good credit doesn’t mean you’ll be turned away. At Loansmart, we look at your overall situation — including your income, expenses, and ability to repay — not just your credit score.
Showing stable income and keeping your current bills up to date goes a long way. Checking your credit report for errors and paying down small debts can also help. The more you can demonstrate that you’re managing money well now, the stronger your application will be.
Yes. If you’re approved and make every repayment on time, this positive history will be added to your credit file. Over time, this can improve your credit score and make it easier to borrow in the future.
They can be. Because lenders see these loans as higher risk, interest rates and fees may be higher than loans for borrowers with excellent credit. That’s why it’s important to borrow only what you can afford and choose a responsible lender who’s upfront about costs.
Most of our loans are unsecured, which means you don’t need to use your car or another asset as security. However, if your credit history is poor, we may require a secured loan to give us confidence in lending.
Loan amounts start at around $2,000. You can borrow up to $50,000 unsecured, or up to $150,000 with a secured loan. In some cases, we’ve approved even higher amounts if they’re affordable.
That depends on how much you borrow, the term of the loan, and your interest rate. To get a quick estimate, you can use our personal loan calculators before you apply.
Our rates start from 9.95% per annum. If you’ve got not-so-good credit, your rate may be higher depending on your circumstances. The most you’ll pay is 35.50%, and we’ll always be upfront with you before you commit.
