Peeping cool things you can use your loan for

There are many types of loans, but which one fits your needs? If you’re looking for a new home, hoping to upgrade your car or simply need some pocket money for the holidays, a loan may be your best bet. However, to find a loan and a loan provider who will best fit your needs, you need to know which types of loans are suitable. Here are 7 common types of loans that Kiwis can take out in New Zealand!

Types of Loans

Student loans

Student loans are types of loans that help pay for your tuition fees, educational materials including books or a computer, and living costs. If you’re a full-time student, you’ll be able to apply for more financial coverage. However, if you’re studying part-time, most loan providers will only offer to cover your compulsory course fees.

Personal loans

Personal loans are unsecured loans that you can use for almost anything. These types of loans don’t have any collateral so the interest rate and size are usually determined by the loan provider. Many providers use credit scores or proof of evidence to make these decisions.

Home loans

In New Zealand, home prices are determined by negotiation between buyer and seller, auction or tender. Furthermore, homes in New Zealand are only increasing in price, especially in Auckland and Christchurch. If you’re looking to buy a home, a home loan is the type of loan that you need.

Car loans

Having a vehicle is an essential part of most Kiwi’s lives. We use it for many of our daily tasks including getting to work, grocery shopping and ferrying kids around. So if your car has broken down or you simply want to upgrade to a new set of wheels, a car loan could get you that financial help.

Loans for pensioners

Some pensioners find their pension lacking because money has been deducted to pay back overdue student loans! When you’re already on a budget, this can be disappointing and financially devastating. However, despite more stringent criteria, there are types of loans out there for pensioners who need some flexibility covering their monthly expenses or who want to explore upskilling courses.

Loans for people on government benefits

Similar to types of loans for pensioners, loans for people on government benefits like the Community Services Card are available in New Zealand. These types of loans can cover monthly expenses, miscellaneous expenses or emergency cash needs.

Loans for bad credit

Bad credit can happen to good people but the goal is to minimize its impact. There are several ways to deal with bad credit scores. One such way is to regularly pay your credit card bills. However, if you’re a bit short on cash this month, a bad credit loan might be what you need to keep your credit score from suffering further.

We’ve all been in that situation when we can’t afford something we desperately want or need. Some of us have had that unfortunate experience more than once! However, there is a general misconception that we need to have a pressing reason to apply for a loan or be truly desperate to consider a loan. Some other misconceptions are that you can only apply for a loan through your bank or that loan applications are long, confusing and simply not worth the trouble.

However, these are all wrong! You can apply for a loan or use your loan for just about anything you need or want! While banks are one source of loans, they’re not the only trusted loan providers on the market. That said, it is important to be wary of loan scams. There are many out there who try and take advantage of innocent people. Though there are some warning signs that will help you to identify a loan scammer. Here is a list of some warning signals that may indicate a loan scam – look out for lenders who:

• Contact you first,
• Ask you for money before you receive your loan,
• Don’t have a legitimate email address i.e. it’s a Gmail or Hotmail address, and
• Don’t have an ABN or are not registered on ASIC’s professional register.

Luckily, with Loan Peeper New Zealand, we’ll help you avoid loan scams by matching clients up with trusted loan providers. We’ve also simplified the process by getting rid of the long application process, stacks of paperwork and abolished queues!

3 things you can get a loan for

So maybe you’re still confused or unsure about what you can do with your loan. Here are three examples of things you might not have known you can use a personal loan to pay for!

Make your home energy efficient and save money

Kiwis are increasingly aware of the importance and benefits of being energy efficient. It not only helps the environment but also their bank accounts, because they use less energy in the long-term!

In fact, in 2015, 40% of New Zealand’s total energy usage was from renewable sources! These sources include sun, wind, hydro and geothermal energy! That’s quite a diverse group. However, wood fuel is still being used for industrial processes and to heat our homes. If you want to make your home more energy efficient try these tips!

1. Replace old light bulbs with new ones
2. Replace white goods like dishwashers and washing machines with higher energy rated appliances
3. Invest in solar panels that can cover your total energy needs so that you stop paying for electricity!

These aren’t cheap modifications but with a quick and easy personal loan, you can make the switch. Making your home energy efficient can be a great investment because it can increase the resale value of your home. Not to mention the money you’ll save on your monthly energy bills. Plus, you’ll be doing your part to help the environment!

Go on the honeymoon of your dreams

A wedding can be a stressful and hectic blur of activity, which leaves the bride and groom wondering why they’re getting married in the first place! The one bright spot, apart from marrying your favourite person, is the honeymoon! It’s a socially acceptable chance to drop your responsibilities and take off somewhere with your new spouse! Many couples treasure this time and tend to want to try something a little more lavish than usual. However, this is not always an option for every couple. If you’ve spent most of your budget on the wedding itself, a personal loan may be just what you need for that trip of a lifetime.

Retraining or studying

Stuck in a job or industry that you just don’t enjoy? Or perhaps you’ve grown tired of the same old thing and want to take upskilling courses? You can use the help of a personal loan or student loan to pay for training or study in a field that you’re interested in. Pensioners are an emerging group of people who are returning to study to upskill. However, as of 2013, students aged above 55 are only eligible for loans that cover their compulsory course costs. However, with a personal loan or loans for pensioners, you can start enjoying the work you do or remain competitive in the tough job market. This is an investment in many ways, from the potential to earn more in your new career to feeling fulfilled in life. Banish those Monday blues!

Key types of home loans

Variable home loans

These types of home loans are very popular because the interest rate varies in relation to the market interest rates. Therefore, your repayments on this type of loan will also go up and down depending on the interest rates.

Fixed home loans

With these types of home loans, the interest rate and therefore, repayments, are fixed over a set period of time. This means that clients can better budget their total loan payments and they are protected from market rate surges. However, it also means that if the interest rate drops, these clients are at a loss.

Split home loans

These types of loans are a compromise between variable and fixed home loans.  Some loan providers will allow clients to split their loan payments into variable and fixed portions. So, while you have some protection from rising interest rates, you also don’t lose out when rates drop.

9 ways kiwis can up skill themselves

If you’re interested in improving yourself or beefing up your resume, taking up a new course is only one available means. However, what if you’re looking to gain a wide variety of experiences or want to try something unique? We’ve compiled a list of 9 ways that Kiwis can upskill themselves outside of the office.

Pick up a new language

Globalization is more impactful than ever before, especially in the job market. People and companies are no longer limited by geographical limitations. Therefore, it’s always helpful to have a couple of languages under your belt. Some of the languages most in demand by companies are Mandarin, Hindi and German as these countries have booming economies. However, this list doesn’t stop at linguistic languages. Coding language is also a very useful skill to pick up!

If you don’t have time to take a class, there are many apps that you can download to help you learn at your own pace. Duolingo and Memrise are free language learning apps. Download Codecademy or Hakitzu Elite if you want to pick up some coding know-how.

Give back through volunteering opportunities

Volunteering can teach you more than you might realise. You meet people from varied backgrounds, experiences and who speak different languages. These experiences can also go on your CV because it’s a testament to your attitude and values.

Shadow a mentor

Old is gold. Learn from the mistakes that people have already made. You can gain lots of professional insight from experienced colleagues or respected figures in an industry. If you’re looking to develop a particular skill, talk it over with a mentor and get their advice on how to progress.

Mentor others

Everyone’s lived experience is very different because people can take away different things from the same lesson. It’s always important to share ideas with peers of all levels. Even experienced workers can learn things from their younger counterparts. Mentoring people can also help you develop soft skills like leadership, coaching and public speaking.

Participate in networking opportunities

Don’t be an ostrich with your head in the sand. The world is a large place and you’ll need to get out there! Talk to people in and outside of your industry. With all the overlaps between companies and job scopes, you’ll never know when you’ll need a friend in an unlikely place!

Subscribe to a webinar, podcast or live events

Webcasts and podcasts allow you to fit learning into your busy schedule. You can do it anywhere, even on the go! Look at reviews and recommendations to find the ones that best suit your interests. Live events are great too, but you’ll have to time it right. However, you’ll get the benefit of being able to connect with other like-minded people.

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