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The Five W’s to Ask Yourself Before Applying for a Loan

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25 OCTOBER 2023

Considering taking out a loan can be an exciting, but at the same time a nerve-wracking prospect. Whether it’s a sudden bill, an event that slipped your mind or you just need a bit of extra cash until payday, a secured or unsecured loan could be just the thing to get you through! But before you dive straight in, here’s our key five w’s asked and answered for you.

Who is eligible for a loan?
While the criteria for a secured loan and an unsecured loan have some variations between them, the essential requirements for both remain the same. To be eligible for you any loan:

  • You must be over 18.
  • You must provide photo ID (this could be a driver’s license, passport, 18+ card with a birth certificate, or a firearms license).
  • You must provide contact details for yourself whether that be a mobile number, work phone or landline.

Where is the best place to get a loan?
We might be a bit biased on this one, but if we’re keeping it impartial, we feel transparency, communication, and customer relationships are three main considerations, along with the costs included of course. In our opinion, Superloans Lower Hutt, Superloans Porirua, Superloans Wellington, Superloans Napier and Superloans Hastings are 5 of the best lenders! Don’t just take our word for it though, check out our customer reviews to help you decide if Superloans is the best place for you.

What’s the difference between a Secured Loan and an Unsecured Loan?
Simply put, the primary difference between a secured loan and an unsecured loan is the security factor. A secured loan, commonly known as a pawn loan, is secured against an item of collateral, whereas an unsecured loan, or as we call it, an express loan is based on your personal income, credit score and affordability assessment.

When I’ve repaid my loan, can I apply for another?
Absolutely! When it comes to our secured loans, there’s no limit on the number of pawn loans you can have on the go, and you’re not bound to redeeming them in order of when your loans were processed. Our express loan is a bit different and while you are limited to one at a time, not only can you top-up your express loan, making repayments will boost your super score, increasing the amount you can apply for next time.

Why does my credit score matter?
We’ve all got credit, some good, some not so good, but first thing to keep in mind is your credit score only impacts your chances of approval if you’re applying for an unsecured loan. When it comes to an unsecured loan your credit score impacts not only your chances of approval, but also the amount you may be approved for. For the lender, your credit score reflects you financial well-being and the likelihood of you meeting the terms of your loan agreement so, essentially, the lower the score, the higher the risk.

Not all lenders are plain black and white when it comes to assessing loan affordability. While your credit score does matter, here at Superloans we’ll also assess your current financial circumstances and the affordability of your application.

The bonus ‘W’: How much can I borrow?
There’s no one-size-fits-all answer for this one, because there are several factors taken into consideration. However,  it’s important to ask yourself “How much do I need to borrow?” Sometimes the amount you can borrow, may be more than the amount you need and while it’s tempting to welcome more money, it’s important to remember that the more you borrow, the more you’ll be repaying.

Sometimes the costs of day-to-day living can catch us unprepared  - we’ve all been there! But being unprepared doesn’t have to mean the end of the world and with the help of our friendly team and the bonus of your first loan free, there’s an option for everyone. Contact us today so we can put any of those borrowing nerves at ease and help you decide which loan is the right one for you. 

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