Why do people look for a lender who doesn’t do credit checks? The answer is – “it’s complicated”. There’s likely to be several reasons with the most significant one being the borrower has a poor credit history for things that have happened in the past and they don’t want to be refused a loan application. Most lenders try to steer clear of such borrowers because the risk is high they will default. The only recourse remaining is to use payday loan lenders who charge higher interest rates
Another reason some people chose to apply for a payday loan in New Zealand with no credit checks is they don’t want the application for a loan recorded on their credit file. Most credit bureaus record loan applications and then take these into account when determining a credit score. A person who applies for lots of loans over a short period will have their credit score down-graded, especially if it’s for a payday loan.
So don’t worry if your credit score is not the best, it probably won’t hold you back from getting a loan from Acorn Finance.
New Zealand has specific laws covering consumer credit such as loans, credit cards and hire purchase. These laws are administered by the Commerce Commission who have provided useful guidelines for both lenders and borrower. Check it out here. It’s worthwhile taking a few minutes to read this information if you are considering a loan.