Personal Loans for Single Parents

If you’re a single parent, know that there are options available to you when it comes to personal loans.

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When you’re earning a single income, trying to get a personal loan can seem like an uphill battle. The eligibility criteria for many banks and lenders can be difficult to meet on a sole income, but you still might need that car; those home repairs or that money for a bond.

This guide takes you through what you need to know about being approved for a personal loan.

Why may you not be approved for a loan as a single parent?

Lenders judge single parents by the same lending guidelines as every other borrower, but the fact that they rely on a single income and are often solely responsible for their debt means they often don’t meet these requirements.

Single parents may also be receiving Work and Income payments, which some lenders may not recognise as a source of income. Single parents may be only working part-time and fail to qualify for the minimum income requirements.

What income do you need to receive to get a personal loan?

Name Product Minimum Income
Save My Bacon Mini Loan
$400 per week
Short term loans up to $750 with no hidden fees. Eligibility: Be 18 or over, have an income of at least $400 per week and be a NZ citizen, permanent resident or have a valid work visa.
Teensy Cash Loan
$500 per week
Eligibility: Must be at least 22; in full time employment or receive a full-time benefit; have a minimum income of $500 per week after tax; be a New Zealand citizen or permanent resident.
Moola Payday Loan
N/A
Borrow up to $2,000 and enjoy a flexible repayment plan. Eligibility: Be 18 or over, have an ongoing source of income, working visa applicants accepted (conditions apply).
Teensy Payday Loan
$500 per week
Eligibility: Must be at least 22; in full time employment or receive a full-time benefit; have a minimum income of $500 per week after tax; be a New Zealand citizen or permanent resident.
Save My Bacon Flex Loan
$400 per week
Medium term loans from $1,000 to $5,000 with no hidden fees. Eligibility: Be 18 or over, have an income of at least $400 per week and be a NZ citizen, permanent resident or have a valid work visa.
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Harmoney Unsecured Personal Loan

Harmoney Unsecured Personal Loan

From

6.99 % p.a.

rate

  • Borrow from $2,000
  • 100% online
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100% confidential application

Harmoney Unsecured Personal Loan

Apply today to get approved within minutes for up to $50,000.

  • Max. loan amount: $50,000
  • Loan term: 36 to 60 months
  • Turnaround time: 99% of approved online applications funded in 24 hours
  • Fees: Establishment fee of $200 for loans from $2,000-$5,000 and $450 for loans from $5,000-$50,000
  • No early repayment fees
  • Personalised interest rates based on your circumstances
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Name Product Minimum Income
Harmoney Unsecured Personal Loan
n/a
Apply for an unsecured personal loan up to $50,000 with no early repayment fees. Eligibility: Be a NZ resident/citizen and have a good credit score.
Pioneer Finance Personal Loan
Secured personal loans from $1,000 - $100,000. Eligibility: Be 18+ (may need a guarantor); be a NZ citizen, resident or have a relevant work visa; have a regular source of income
Nectar Personal Loan
$400 per week or more (after tax)
Unsecured loans from $1,000 with payouts made within one day of approval. Applications entirely online. Eligibility: Must be 18+, an NZ citizen or permanent resident, and have an income of $400 per week or more (after tax).
Lending Crowd Personal Loan
$30,000
A secured personal loan from $2,000 to $200,000 with repayment instalment options. Eligibility: Be an 18+ NZ permanent resident, earn $30,000 or more, have a good credit history and collateral/security.
QuickLoans Personal Loan
$450 per week
Borrow up to $20,000 and apply online within 5 minutes. Eligibility: Be over 18, hold permanent NZ residency, have collateral/security, earn at least $450 per week.
Admiral Finance Secured Personal Loan
$450 per week
A secured loan from $1,000 to $50,000 with a quick online application process. Eligibility: Be an 18+ permanent NZ resident, have collateral/security, earn at least $450 per week.
Teensy Personal Loan
$500 per week
Eligibility: Must be at least 22; in full time employment or receive a full-time benefit; have a minimum income of $500 per week after tax; be a New Zealand citizen or permanent resident.
Save My Bacon Flex Loan
$400 per week
Medium term loans from $1,000 to $5,000 with no hidden fees. Eligibility: Be 18 or over, have an income of at least $400 per week and be a NZ citizen, permanent resident or have a valid work visa.
NZCU South Personal Loan (Unsecured)
$500 weekly
An unsecured personal loan up to $50,000 with personalised repayment options. Eligibility: Be an 18+ permanent NZ resident or non-resident on a working visa, earn $500+ weekly.
NZCU South Personal Loan (Secured)
$500 weekly
A secured personal loan up to $50,000 with personalised repayment options. Eligibility: Be an 18+ permanent NZ resident or non-resident on a working visa, earn $500+ weekly.
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How to compare your personal loan options

While you may feel you have limited options, it is still important to compare the products available to ensure you get the best option.

  • Interest rate. Compare fixed and variable rate personal loan options and find a rate that is competitive.
  • Fees. Personal loans come with both upfront and ongoing fees, so compare these, as they will contribute to the cost of the loan.
  • Restrictions. There may be a restriction as to how much you can borrow; whether you can make extra repayments or repay the loan early.
  • Repayment flexibility. This is an important consideration, as it could affect your ability to manage the loan. See if you can make weekly, fortnightly or monthly repayments and if they line up with your pay frequency. You should also note your ability to make additional repayments.
  • The lender. The lender you borrowing from should be a factor in your decision, as this is a business you will have to deal with for the next few months or years. See how easy the lender is to contact and, if possible, read a few third-party customer reviews about them online.

How to improve your chance of being approved for a loan

  • Check your credit score. Check your credit score for free with finder to see your borrowing position. The higher your score, the less of a risk you appear to a lender.
  • Get advice. You can get in touch with a free financial counsellor at a Community Law Centre, who can take you through your financial options.
  • Consider alternatives. There are a range of options that include low- and no-interest loans. These are designed to help people on low incomes pay for necessary expenditures, such as a car or home repairs.
  • Borrow a lower amount. You should only borrow as much as you need and can afford. Lenders may reject your loan application if they think you can’t afford the repayments, rather than offering you a lower amount.
  • Talk to the lender before you apply. Discuss your eligibility with the lender before you apply. Remember, every loan application you make shows up on your credit file, and too many applications in a short space of time may appear irresponsible.

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