If you’re on top of your finances and you’ve got a good credit score, congratulations!
You may be eligible for personal loans for good credit, which usually offer lower interest rates than for those with fair credit scores.
Having a good credit score is a wonderful achievement: you have paid your loan repayments on time, you take care of your bills promptly, and you don’t have too much existing debt.
A good credit score opens you up to getting a better deal when it comes to getting a loan.
This is because you’re seen as less risky to some lenders, so they’re more confident in offering you a lower interest rate.
We say “some” lenders, because not all offer personalised rates based on your credit score.
Keep reading to learn more about why you may get a better deal on loans for good credit from an online loan broker compared with a traditional lender, like a bank.
Why credit scores matter
Your credit score is a number between 1 and 1000, which helps lenders make decisions about offering you a line of credit.
It’s not just loan companies that use them – utility companies also look at your credit when you take out a power or phone plan.
Your credit score is influenced by your past credit history. So, if you pay your bills and make loan payments on time, your credit is likely to be good.
However, if you miss your monthly repayments, or you’re late paying your bills, your credit score will take a hit.
There are other factors that make up your credit score, such as how long you’ve had credit accounts, the total amount of money you owe, and how many times recently you have asked for a new line of credit.
What is a good credit score?
| Band | illion | Centrix | Equifax | What this means |
|---|---|---|---|---|
| Excellent | 800 - 1000 | 893 - 1000 | 800 - 850 | Those with a score in this range are considered low-risk borrowers and might have an easier time getting a loan or credit card. |
| Very Good | 700 - 799 | 825 - 892 | 740 - 799 | Have demonstrated positive credit behaviour and should be eligible for most lines of credit. |
| Good | 500 - 699 | 706 - 824 | 670 - 739 | Nothing significantly negative in your credit report, so still considered relatively low-risk. Should be eligible for credit. |
| Fair | 300 - 499 | 496 - 705 | 580 - 669 | Seen as riskier for lenders, you might still be able to get credit but there may be conditions attached. |
| Poor |
1 - 299 |
1 - 496 |
300 - 579 | There may have been significant issues in your credit history, meaning lenders will be cautious about lending. However, this score can be improved with good credit behaviour. |
If your credit score is poor, don’t worry, this doesn’t mean you can’t get credit. It just means your interest rate may be a bit higher, reflecting the added risk, or there might be other conditions attached to your loan.
Loan Direct works with people who have bad credit history, helping them rebuild their credit scores so they can enjoy the freedom that comes with an improved credit score.
Does a good credit score mean a better interest rate?
If your credit score is good it means you’ve been diligent in paying your bills and loan repayments on time, and lenders can be more confident that you’ll do the same with future lines of credit.
However, this doesn’t necessarily mean you’ll get a better interest rate, but it depends on the lender.
It’s generally more expensive to borrow from a bank, who tend to take a one-size-fits-all approach to lending. For example, BNZ, ANZ, ASB and Westpac charge between 12.90% and 13.95% for personal loans (as at August 2024).
Loan Direct’s rates start from just 9.95%.
We can do better because we believe good credit behaviour should be rewarded. By offering personalised rates tailored to you, with Loan Direct you can get a better deal.
How do we do it?
Loan Direct is an online loan broker, which means we don’t lend you money directly: instead, we put your loan application in front of multiple low-cost lenders.
More lenders means more chances of approval! It also gives you much more choice.
After we’ve presented your application to our lenders, we come back to you with options and you pick the deal that’s best for you.
Not only do you get the low rate you deserve, but you only have to make one application.
This is important because making multiple loan applications in a short period of time can harm your credit score.
By just making one, your good credit score will be preserved.
With Loan Direct, you can borrow up to $75,000 unsecured, or $150,000 secured.
We take the hassle out of borrowing, making the whole process super easy so you can just sit back and let us do the hard work for you.
A credit score of 700 is generally considered a very good score in New Zealand, depending on which credit reporting agency you’re looking at:
illion: 700 falls into the Very Good range (700–799)
Centrix: 700 is at the lower end of the Good range (706–824)
Equifax: 700 sits within the Good range (670–739)
This means you’re seen as a relatively low-risk borrower. You’ve likely demonstrated positive credit behaviour, and in most cases, you should be eligible for credit with favourable terms. Keep up the good habits and you may move into the Very Good or Excellent range over time.
Your credit score plays a significant role in determining the interest rates and terms offered by lenders. Higher credit scores generally lead to lower interest rates and better loan terms, while lower scores may result in higher rates and fewer options.
To improve your chances of securing a better interest rate, focus on boosting your credit score by paying bills on time, reducing debt, and avoiding getting credit checks too often. Did you know that every time to apply for a new utility account (like a phone or power plan), a credit check is done on you? Having multiple credit checks in a short period of time can harm your credit score, so avoid this if you can.
The approval process can vary depending on the lender. Some online lenders, such as Loan Direct, offer fast approvals—often within the same day*—while traditional bank loans may take longer. While Loan Direct doesn’t offer instant cash loans (no reputable lender does), we can provide same day loans subject to responsible lending checks.
If you have a good credit score, your weekly repayments on a $20,000 loan over 5 years could be $111. This is an example based on 12.95% annual interest rate. The actual rate you qualify could be more or less depending on your financial situation.
