How to get your debt down for a personal loan – the checklist

Got some big plans but need a helping hand to achieve them? That’s where a loan might come in. If you’ve never had a loan before, you might be feeling a bit apprehensive about the approval process. Put your mind at ease – we’re going to talk you through the approval checklist. Here’s an insight into what lenders are looking for:

· How old are you?

First, the easy stuff – age may be just a number, but you still have to be over 18 to apply for a loan. If that’s your, congrats – you’re one step closer to getting approval.

· Have you got a photo ID?

You’ll need to show your passport or a current NZ driver’s license in your loan application.

· Do you have the right to work in New Zealand?

If you’re a New Zealand citizen or resident, you’re good to go. You may also be eligible for a loan if you have a valid work visa, so long as it doesn’t expire before your loan terms. That means your loan will need to be repaid in full (with interest) before your visa is up.

· Do you have a job?

The general rule is that you need to have some form of income approved for a loan and comfortably afford the repayments. It can be full time or part-time (self-employment is also fine). So long as your role is permanent and you’ve been in the job for three months or longer, that should be enough to prove that you have consistent income. This brings us to this next point…

· How’s your income looking?

A responsible lender won’t approve a loan if there are doubts that you can afford the repayments comfortably. If you can’t, it’s not good for anyone. The exact amount you need to be earning will depend on the size of your loan, how quickly you’re paying it off and what other expenses you have. Most people need to be earning over $500 a week to be approved for even a small loan.

· How much do you want to borrow?

The bigger the loan, the bigger the repayments. We offer loans between $2,000 – $75,000. Before we approve anything, we’ll look at your income and expenses and then decide on the maximum loan that you can afford. You can choose to take on a loan smaller than that if you wish.

· What is your bankruptcy status?

People who have declared bankruptcy aren’t eligible for loans. Bankruptcy normally takes about three years to be discharged and 7 up to 7 years to drop off your file. Once you’ve been cleared, then you’re welcome to apply for a loan.

· What is the state of your financial conduct?

When you apply for a loan, the lender will review your credit report as well as your bank statements to get an idea of things like whether you pay your bills on time, whether you’re into gambling, how often you slip into overdraft – basically, whether you can be relied on to make the loan repayments. Credit scores aren’t everything, and it’s entirely possible to get a loan if your score has seen better days, but a healthy score will usually mean better loan terms. You can find out more about credit reports here.

That’s the checklist! How did you do? If you’re interested, you can apply for a loan online here. It’s super easy, and you’ll have your answer in 60 seconds. Our process won’t affect your credit score, and there are no obligations to follow through with the loan if you’re approved. If you want to talk to someone about your options, one of our advisers will be happy to help. Feel free to get in touch.

This blog is provided for general information purposes and is not a recommendation you enter into or exit any particular loans or insurance policies. Information on the blog does not take into account your particular circumstances, including your objectives, financial situation or needs. We recommend you seek advice from a financial adviser before taking any action as appropriate. The Lending People Limited (FSP240365) is a licensed financial advice provider and can provide advice on some types of personal loans, insurance. Find out more about The Lending People and how we may be able to help you.