Credit card, personal loan and overdraft applications

What we consider while assessing applications and what to do if you've been unsuccessful.

There are many factors that influence the assessment process, what supporting documents we might ask for and the eventual outcome of an application. 

This page might help you understand why you've had a lending application declined. It's also handy if you're getting ready to apply again, with helpful tips so you have a better chance at being approved next time. 

1. Income

Consistent and regular income is an important indicator of your ability to meet your repayments. If you have been previously unsuccessful with your lending application, you could re-apply when there is a significant increase in your income (for example, a pay rise) or additional source of income (such as IRD or WINZ payments, boarder income); or a decrease in your expenses (cutting-back on non-essential costs) or reduction in overall debt (such as repaying and closing a credit card, overdraft limit or hire purchase). 

2. Account operation

Keeping your accounts within their limits shows you're able to manage your money. Avoid regularly overdrawing your account by going into a negative balance and steer clear of dishonoured payments which are failed direct debits.

For some helpful financial wellbeing tips and tools check out ASB MoneySpace

3. Credit check

Having a clear credit history is essential for getting finance. It's essentially a list of all the places you've had debt with, and how good you are at paying it off. Make sure you keep up to date with payments and clear any outstanding debts. You can check your credit history by ordering a credit report through Equifax. If you spot any defaults (for example, overdue loan payments) which you don't recognise or which may not be your fault, then you can ask to have these reviewed by the credit record organisation.

4. Other debt

The overall debt you hold has an impact on your request for new lending, even if it's not with ASB. It could be helpful to close a significant portion of your debts such as Buy Now Pay Later schemes or store credit cards that you have repaid and no longer use or may no longer need. See our guide for 5 great tips to take control of your debt

5. Employment

Having a job with regular income helps show you can make repayments. We look at things like how long you've been in your job, how often you change jobs or if you're still within a probation period. We also consider whether you're a contractor or permanent employee, or if you've had periods of recent unemployment. If you're self-employed, the number of years you can provide financial records for your business plays a role too.

6. Visa type and duration

Your visa status and its duration are important in reviewing your application. For example, a personal loan term must end at least one month before the expiry of your work visa. If that's not the case, you can apply for us to re-assess your application once you've secured NZ residency or an extension on your work visa. A New Zealand Visitor Visa is not an eligible visa type for lending with ASB. 

Need a little extra help?

Are you experiencing financial difficulty? Our Financial Assistance team can help if things are really tough. 

ASB Support Finder can help you find out what government financial support may be available to you. 

ASB's lending criteria, terms and fees apply. Minimum personal loan amount is $2,000. Refer to asb.co.nz for fees and charges. This page is intended to provide general information only. It is not financial advice and does not take into consideration your personal needs and financial circumstances. You should consider seeking financial advice before making any decision based on this information.