Tip 1: Don't borrow what you can't pay back.

  • Check to see what interest rate you can afford before committing to taking out a loan.
  • Borrow as little as possible, and pay what you owe on time.
  • Shop around for lenders — don't just take the first one you see handing out easy cash.

Tip 2: Be aware of your credit score.

  • Credit scores are what lenders use to judge how well you pay back their money. You can find out more about scores here.
  • If your score is low, maybe it's time to save up first before taking on a big, high-interest rate loan.
  • A good, regular repayment history can improve your score, while no repayments data won't add anything.
  • However, make don't feel pressured to begin borrowing — you can take out a loan or credit card whenever you feel ready and feel able to meet repayments.


Tip 3: Always budget.

  • Once you've found a loan, make a budget at an interest rate you like.
  • What do you need to pay off first if you can't meet it?
  • How long will it take you to do so?
  • Be aware that loans can increase. And if they do, you may need to talk to your lender first about what to do if you can't afford repayments.

Tip 4: Get weirdly into financial reports.

  • If you're going to the bank or a lender for a business loan, you'll need to have a credit report.
  • Get together all your expenses, outgoing costs, and expected incomes for your report.
  • If making reports isn't your thing (which for many, it isn't), consider going to a credit reporter, like Equifax, illion or Centrix.
  • Do check the report you get back — there might be mistakes, which you can query if you think they're wrong.


Tip 5: Be a wise student, not a poor one.

  • If you're thinking about studying, check to see what loan you can get.
  • If you don't know, contact Studylink — they handle all student loans.
  • There are two loan types — allowance and loan.
  • Allowance is free, and you don't pay it back. It's based on your circumstances - check first to see if you qualify.
  • Student loans you do have to pay back. Try to take out as little of this type as you possibly can.

Tip 6: Get a car you can afford.

  • Don't just look at the price tag — what's the interest rate and associated fees?
  • Consider an older model. Often they've lower interest rates attached.
  • Look at the details — what's expected of you? Are you paying a secured loan (using something you own as collateral against you not paying) or unsecured (no collateral but potentially high-interest rates!)
  • Check online for a car financing calculator if you're unsure how much you're spending.

Need help managing your money? Yonda's here for you.

The best place to start for personal loans in NZ is figuring out just what your credit score is. Yonda’s built for just that — we’re all about helping Kiwis do better with their money. That’s why we’ve put together a fantastic new app that lets you check your credit score on the go. You’ll also get access to heaps of helpful information designed to help you manage your money better.

Sound good? Head to our homepage to download the app and find out more.


Info and tools on the Yonda website are used as a guide only and do not constitute financial advice. Use Yonda as a starting point and then seek professional advice.


Mortgage finance tips.

Car finance tips.

Credit score check.

Credit scoring tips.

KiwiSaver tips.

Personal finance tips.

Cyber Security tips.

Personal loan tips.