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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 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 are our key five w’s asked and answered for you.

Who is eligible for a loan?
While the criteria for a secured and unsecured loan vary, the essential requirements remain the same. To be eligible for any loan:

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

Where is the best place to get a loan?
We might be biased on this one, but if we’re keeping it impartial, we feel transparency, communication, and customer relationships are three primary considerations, along with the costs included. We believe 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; 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 security factor is the primary difference between secured and unsecured loans. A fast loan, commonly known as a pawn loan, is secured against an item of collateral. In contrast, 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! Regarding 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 redeem 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, but 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 the first thing to remember is that 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 affects your chances of approval and the amount you may be approved for. For the lender, your credit score reflects your financial well-being and the likelihood of 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 assessing loan affordability. While your credit score does matter, here at Superloans, we’ll also evaluate 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 because several factors have been considered. However,  it’s essential 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, day-to-day living costs 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 being free, there’s an option for everyone. Contact us today so we can ease any of those borrowing nerves and help you decide which loan is the right one for you. 

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