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ABOUT US > FAQS
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FAQSFrequently asked questionsQ What does pre approval mean? A This is when you get finance arranged before you go shopping. It can be a great advantage when negotiating a cash deal. When you are pre approved, you are shopping as a cash buyer.
Q Why would I need a guarantor or co-borrower?
A A Guarantor or Co-borrower may be a parent, in-law, or guardian who together with your credit record may give the finance company sufficient comfort with respect to your credit worthiness. The guarantor or co-borrower may be asked to support your application where your affordability is questionable, or your credit history has not yet been established with a credit agency
Q Do I need a deposit?
A We can provide 100% finance to applicants, who are not necessarily homeowners but have lived at their residence for 2 or more years, have clean credit history and stable full-time employment. If you do not fit this criterion we require some form of equity, usually 20% of the loan amount, and this may take the form of a cash deposit, trade or security over a second car, or boat.
Q What other information do I need to apply for a loan?
A A restricted or full NZ drivers, you latest pay slip or proof of income or copy of recent bank statement, as well as a current utility bill. Once you have found your vehicle or boat we will require confirmation that full insurance to the value of the purchase has been taken out. Alternatively you can organise insurance through us at competitive rates.
Q What terms do you offer?
A Our minimum term is 6 months and our maximum is 60 months. We can also structure the loan to have a deferred start with differing repayment amounts. We could also set up a balloon (”residual”) payment at the conclusion
Q What is your minimum and maximum loan?
A Minimum $1,000 Maximum $20,000. Although we will go higher however this is subject to sufficient security. The application will require approval by two Directors.
Q How long does it take to get a loan application approved?
A We try to maintain an approval time of 1 hour from the time of your application. This may vary depending on the accuracy and complexity of the application.
Q Do I need a good credit history?
A Preferably. You must have clear credit with Veda Advantage, or Dunn & Bradstreet, or if you have debts recorded against your name these must be paid. We pay particular attention to adverse history with respect to other financial institutions. We place little reliance on certain defaults such as Adfit memberships, LTSA or Doubleday. Click here for a copy of Veda Advantages credit scoring system. If you have a low Veda score you may find that we require further information which delays our decision.
Q How old do I need to be to get a loan?
A You must be over the age of 18.
Q Where do I sign the documents?
A We will forward documents to you at home, or place of work for your convenience. This may be by email, registered post or alternatively you can collect the documents from our office.
Q What is a secured loan?
A A secured loan is a loan which you use an asset, usually a car, boat or house as security. A secured loan generally attracts a lower interest rate than unsecured loans and debt consolidation loans.
Q What is an unsecured loan?
A An unsecured loan does not use an asset for security. You must have clear credit however, demonstrate a proven credit history, and be in stable employment. If you have had previous history with our company we will view your application favourably so please advise us of this. Unsecured loans generally attract a higher interest rate than a secured loan.
Q Do you offer a scheme whereby my repayments can be made if I can't work?
A Yes, we offer a Loan Payment Protection Plan (PPP) Insurance that covers your loan repayments if you can't work due to accident, sickness or redundancy subject to the terms and conditions of the policy. We also have Lifestyle Protection Insurance arranged by Autosure, along with GAP insurance, and comphensive motor vehicle insurance.
Q What if you have been declined credit?
A If your application has been declined, then you can apply to Veda Advantage, or Dunn & Bradstreet to get a copy of your credit file. Give Veda a call on 0800 692 733, alternatively look them up on http://www.mycreditfile.co.nz/ To improve your credit score then either contact Veda to discuss or click here for further details.
Q How can I improve my credit score?
A Veda Advantage in the past few years have introduced a credit scoring model that is based on statistical scoring. Customers whom may have had a good score in the past may through an oversight now find that this is no longer the case. Paying your defaults promptly will improve your score. Contacting your credit provider and entering into a repayment arrangement will also help. Staying put will also help. For further details on how to improve your credit score please contact Veda.
Q What age vehicles will you finance?
A Typically we will lend against vehicles that are no older than 10 years.
Q Are there any fees if I settle my loan early?
A Yes, there are fees for early repayment in full. The fees and amounts differ between lenders. The fees applicable to early settlement are set out clearly in the loan documentation. Interest is calculated daily right up to the date of prepayment, so there are no penalties apart from a small administration fee to cover costs. You can pay your loan off faster if you wish and actually pay less interest than originally recorded on your contract.
Q How do I make my loan payments?
A You can pay weekly, fortnightly or monthly by automatic payment authority, direct debit, internet banking or by deposit card
Q What is debt consolidation?
A The combining of all your monthly bills into one. There are a number of benefits to debt consolidation. Once you have combined your debts you will have only one bill. You could also free up valuable household income as debt consolidation loans can often have a lower interest rate than the combined finance charges of all your other loans, hire purchases and credit cards. Debt consolidation loans require security usually for the amount you have applied.
Q What can I use a personal loan for?
A This is entirely up to you. It could be for home renovations, retail purchases, and holidays or to pay some old debts. Tell us what you are needing the cash for and we will see if we can accommodate!
Q What if I want to borrow more in the future?
A Not a problem as long as your repayment history with us is good. We will not generally lend further within a 6 month period, unless you are able to offer further security or indicate to us that you can afford a higher repayment level.
Q Why has my application been declined when my credit check shows no adverse?
A You may have undisclosed loans registered on the Personal Properties Securities Register indicating that you do not have affordability for the loan. We recommend that you disclose ALL outstanding loans with other credit providers. And where loans have been paid in full, request in writing from your credit provider, confirmation that any financing statement has been discharged.
Q How long does a financing statement stay registered on the PPSR?
A Normally five (5) years from the date of taking out a loan. This term can be shortened if you pay the loan early, and the credit provider discharges the security interest. It may be amended or renewed if you take out subsequent advances and offer the same security. We recommend that you repay the loan in full as soon as possible. Residential and Commercial Mortgage Customers
Q Am I able to vary the conditions of my current mortgage?
A All requests to vary your current mortgage are at the discretion of the Board. Please contact us on 0800 929 929 to see if your request will be possible. We will be able to advise you on what information is required as part of the request process. Q I wish to discharge or refinance my mortgage. What should I do? A It can take some time to organise a discharge therefore we would appreciate it if you could provide us with a minimum of 14 days notice of your intention to discharge or refinance. All requests for discharge or refinance must be made through your lawyer. Q Are interest rates likely to go up or down? A We cannot provide advice on whether interest rates are likely to rise or fall in the future. However, we continually monitor the market to determine appropriate interest rates, and adjust interest rates as and when market conditions dictate. Q Do I need to have insurance? A Yes. Your loan contract specifies that you must have current home insurance at all times. Failure to do so is a serious breach of your loan contract. If you change insurers, please contact us on 0800 929 929 and advise us of your new policy details. Q Am I required to keep my property rates up to date at all times? A Yes. Your loan contract specifies that you must keep your rates current at all times. Failure to do so is a serious breach of your loan contract. Please note that if you are in arrears on your rates your local council will inform us of this breach. Q I’m having difficulty meeting my loan repayments. What should I do? A You must contact us as soon as you are aware that you are having difficulty meeting your mortgage repayments. Q I have missed one or more loan repayments and my mortgage is in arrears. What happens now? A As soon as you miss a regular scheduled mortgage repayment you will be contacted by us immediately, and your loan account will start accruing default interest. If your arrears are not remedied within 30 days we will issue a Property Law Act (PLA) notice. A PLA notice requires you to pay your arrears within 20 working days from the date of the PLA notice. If this does not occur, it gives us the right to sell your property. If you do find yourself in this situation, you may wish to initiate the marketing and sale of your property yourself. However, if you choose to do so, we will need to give our consent to any sale. Please contact us on 0800 929 929 to discuss what other requirements you will need to meet. Please note that any failure to meet your loan repayment obligations will impact negatively on your credit history. |