Can I get a Home Removals Loan? FAQs.

Here are the answers to some commonly-asked questions about loans for the costs of home removals.

Are there loans for home removals services?

Yes.

You may be able to obtain one from your bank, although banks aren’t quite as free-thinking with their lending as they once were.

Alternatively, some professional removals companies, Christchurch or elsewhere, may be able to offer such assistance too.

Am I guaranteed a loan?

No.

No lender anywhere will guarantee to offer a loan in advance. They always make their publicity “subject to status”. What that means is that they’ll want to look at your income and credit history before deciding whether or not to advance a loan.

This is perfectly normal practice and you’re not being singled out. If you think about it, would you lend money to a stranger if you knew nothing about them, their reason for asking for the money and whether or not you’d stand a fair chance of getting it back?

Can I get a loan if I have a poor credit history?

Very possibly yes.

It depends upon the exact nature and severity of your credit history difficulties in the past.  It’s been estimated that about 80% of us have some minor blemish on our credit history files (e.g. an accidentally overlooked credit card repayment one month) and typically, lenders see those as nothing.

Some problems can be far more severe including being sued for loan defaults and so on.

If you have some moderate problems on your files, they won’t be a showstopper, though the lenders may increase their interest rate a little to reflect the extra risk they’re taking.

Why do lenders ask for receipts?

If you’re getting your finance through a removals company, that probably won’t be needed. The lenders might typically send the agreed sum directly to the removals company.

If you’re applying to other sources, the lenders may (though not always) wish to see evidence of the quotation in order to check that it’s reasonable. They might also ask to settle the sum directly themselves. In other cases, they may issue the loan to you but ask you to show evidence that you’ve used it for the purposes intended.

This is all normal and should not be cause for concern. It’s largely to do with the lenders either trying to reduce the risks of payment default due to you spending the money on other things (e.g. gambling) or to avoid loan fraud.

How do I know that I’m getting a fair interest rate?

Only by shopping around and doing some online research.

How long can I borrow the money for?

That’s a matter for you and the lender to discuss.

Most lenders will accept repayment over a few years if the sums are larger. Do remember though that the longer the repayment period, the more the loan will typically cost you in interest payments over time.

Could I pay for removals services by credit card?

Yes, assuming that the company concerned accepts them.

It’s worth keeping in mind that borrowing money on credit card is typically one of the most expensive ways to use what is in effect a loan (assuming you don’t repay the loan in one go before the month end or pay it off very quickly). 

Compare it to the costs of a purpose-specific loan from another company.

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