Need Cash? Here Are Fast Approval Loans For Unemployed In NZ

Date Jul 7, 2021
Blog category Personal Loan
By Tina M.
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Contents:

Caveat:

   - When applying for a loan, make sure you can afford your monthly repayments.

   - The greater your loan, the longer you'll have to pay for it.

   - Applying for a credit card isn't always a good idea, especially if you're uncertain about making regular repayments. Credit cards can be used to pay for utilities,         but they must be repaid right away.

   - WINZ can help aid you with your finances, provided that you meet certain requirements.

   - A personal loan can be used to consolidate debt, pay for medical expenses, or make necessary home improvements.

Taking out a loan might benefit you in many ways. It can be used for education, travel, debt repayment, house deposit, car, or appliance, emergencies, and much more. While it may relieve your financial strain, it may also add to your debt, especially if you don’t have the finances to make repayments.

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Save or borrow?

Depending on your needs, you can choose from several fast approval loans for the unemployed in NZ. You can apply for a home loan to fund your repayments, as well as a car loan and a personal loan to cover personal expenses.

Here are the main reasons why you should consider taking out a personal loan:

Debt Consolidation

Are you the type who uses a credit card more than paying upfront? If that’s the case, then you can apply for a personal loan to consolidate your debt, particularly credit card debt.

Personal loans have lower interest rates than credit cards, especially if you have good credit. The best personal loans have interest rates as low as 4%, which is lower than the double-digit percentages charged by most credit cards. You can get a personal loan, pay off your credit card balances, and then make one payment to your new personal loan provider.

Home improvement

For those who wish to renovate their homes, you could use a home equity loan to repair or make upgrades to your home. Home equity loans and lines of credit are excellent for home improvement projects as they’re secured and rely on the value of your home as collateral.

If you don't want to risk losing your home if you fall behind on your payments, a personal loan is a good alternative. In most, a personal loan may be easier to get than a home equity loan.

Why avoid a personal loan

While personal loans can be a lifeline in times of dire need, there are some situations in which you should avoid borrowing money.

  • You should avoid taking out a personal loan if you can't afford it. Borrowing money in the short term is one thing, but keep in mind that you will still have to pay it back. If you can't afford the monthly payments on your new personal loan, think about cancelling it.
  • You don't need it. If you're thinking of taking out a personal loan to cover the cost of a vacation or something you don't need right away, consider deferring it until you have more cash on hand.
  • There are better alternatives. A home equity loan or line of credit may be a better option for home improvements and repairs. An auto loan can help you save money on a car or other vehicle.

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What if I’m currently unemployed, can I still apply for a loan?

When it comes to taking out a loan, it’s always on a case-by-case basis. Some lenders don’t conduct background checks so long as applicants meet all of the requirements. However, it’s usually ideal and wise to first assess your financial circumstances, whether you have recently lost your work or have sufficient savings in the bank.

Where can the unemployed get a loan?

1. Work and Income NZ

If you’re facing financial difficulties or want to look for a job as soon as possible, you can apply with Work and Income NZ (WINZ) for urgent or unexpected costs.

Your application can cover the following:

  • Food
  • Accommodation costs (rent, mortgage, board)
  • Power, gas and water bills or heating
  • Dental treatment
  • Glasses
  • Whiteware (eg, fridge, freezer, washing machine)
  • Medical costs
  • Home repairs and maintenance
  • Car repairs
  • Bereavement
  • Fire or theft

If you weren’t qualified for this application, you can apply for a special needs grant or recoverable assistance payment instead. 

For more information, you can join this Facebook page created by WINZ and MyMSD members themselves. 

2. Credit Unions 

Credit unions are similar to credit cards in that they can be used to pay off unexpected bills. A credit union, on the other hand, is a volunteer-run organisation with thousands of members and is created by large companies and other institutions for the benefit of their employees and members. They’re classified as non-profit organisations and hence, have tax-exempt status.

As many individuals and families are in need of fast-approval loans in NZ, there are many credit unions you can apply to like First Credit Union, NZCU Central, NZCU South, NZU Baywide, and other banks and companies that accommodate Kiwis with zero or bad credit history.  

3. KiwiSaver

If you find yourself in need of funds for bills, relationship property, or even student loan repayment, you can opt for an early withdrawal of a portion of your Kiwisaver.

In general, your KiwiSaver account is designated for when you plan to retire. But, if you’re in desperate need of funds, you can contact your KiwiSaver provider for a step-by-step procedure for withdrawing money from your account.

What are the biggest mistakes you can make when borrowing money? 

Borrowing an amount that you can’t pay back

They say that you shouldn’t only save for what you want to buy, but also for the next three months in case of emergencies or if you lose your work.

Just because you earn a certain amount today doesn’t guarantee that you’ll earn the same amount in the coming months. Anything can happen in a year, so it's a smart idea to evaluate your financial condition before applying for a personal loan.

Borrowing money at high interest rates

Choosing a loan with a high-interest rate can make it more difficult for you to live within your means and achieve your financial objectives. There are various banks and lenders that provide fair and low-cost rates, particularly to those in most need. Before submitting your application, it's best to shop around and get quotes from multiple lenders.

When it comes to your finances, it's important that you fully understand what you're getting into, especially if you're applying for a loan. To avoid going bankrupt due to unpaid debt, keep the following in mind: 

  1. Monthly payment
  2. How often your repayments could go up, what could trigger them to rise
  3. Maximum payment amount if your payment went up
  4. Expected date to pay off your loan 
  5. The total amount of interest over the life of your loan
  6. Prepayment fees or penalties if you pay off the loan early or refinance it. 

Use glimp's Personal Loan Calculator for FREE! Find the best rates and get an estimate of how much you'll be paying monthly.

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