Every time you apply for a loan, a credit check is completed. Details of those checks are kept on file for around four – five years. If you are applying for many loans in a short period of time, this can negatively impact your score. This is because it could indicate that you’re applying for more credit than you can afford to repay. You can learn more about what impacts credit scores on the Government’s consumer protection website.
The key thing to remember is this – when applying for a loan, it’s vital to choose the right Loan Company. Here are three factors to consider when deciding which lender to choose.
1. Choose a low cost lender. High-cost loans can impact your credit score. Loansmart is a low cost lender. The maximum amount we charge in annual interest rates is 29.95%. But our lowest interest rate is 8.95%.
2. Choose a reputable lender. Loansmart is trusted and preferred by tens of thousands of clients across NZ. More than 25% of our lending is to existing clients, this is because they trust us to provide great solutions. Having been in business since 2008, we’re proven, experienced and extremely good at what we do! Review our 5-star Loan Reviews on Google My Business.
3. Choose a lender that can provide more options, for more chances of success. You’ve got a good chance of getting your loan approved with us. With more options than other lenders, and a more inclusive acceptance criteria, we say ‘yes’ more often.
Remember, every time you apply for a loan a credit check is completed. So it helps to apply with a company that’s more likely to be able to find you a solution, so you don’t have to keep applying!