Question 1

Will consolidating my debts affect my credit score?

Accepted Answer

We run a soft credit check during our assessment which does not appear on your credit file or affect your score. Once we match you to a lender, some accept our soft check while others may run their own standard credit check as part of their process. We will let you know before we submit.

Question 2

What debts can I consolidate?

Accepted Answer

Most personal debts can be consolidated into a single loan including credit cards, personal loans, hire purchase agreements, store cards and overdrafts. Tell us what you owe and we will match you to the lender best suited to your situation.

Question 3

Will I actually save money by consolidating?

Accepted Answer

In many cases yes, particularly if your existing debts carry high interest rates such as credit cards or hire purchase. By rolling them into a single lower-rate loan you reduce the total interest paid and simplify your repayments into one fixed amount. The actual saving depends on your current rates, the new rate offered and the loan term.

Question 4

How much can I borrow to consolidate my debts?

Accepted Answer

The minimum is $3,000 and the maximum is $250,000 depending on the lender and your personal circumstances. Loan terms range from 6 to 84 months.

Question 5

Can I consolidate debt if I am still paying off a car or personal loan?

Accepted Answer

Yes. Existing car loans and personal loans can typically be included in a consolidation loan. The new lender will pay out your existing debts directly in most cases. Our team will confirm exactly what can be included when we review your application.

Question 6

How quickly can I get the funds?

Accepted Answer

Same-day funding is possible for applications approved before 12pm on business days. Most applicants hear back the same day they apply.

Question 7

Do I need a good credit history to consolidate?

Accepted Answer

We work with employed borrowers who have a clean or near-clean credit record. If your credit history has been affected by the debts you are looking to consolidate, apply and our team will assess what is possible. We do not accept applications from borrowers with significant defaults or serious credit issues.

Question 8

Is there a fee to use Lending Room?

Accepted Answer

A broker and introducer fee of up to $1,500 applies when your loan is successfully funded. This fee is added to your loan amount and is GST inclusive. It is disclosed clearly before you commit to anything and you are never under obligation to proceed. Lender establishment fees may also apply depending on the lender.

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Loan guides and money tips for New Zealanders

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