Easy Payday Loans Australia
Online Payday Loans in Australia
Applying for payday loans in Australia is incredibly easy thanks to the Internet. The majority of creditors now have online application forms that you can fill out when sitting at home. Payday loans are a great short-term solution when you are in need of fash cash. Such loans help to protect you from unforeseen expenses, including, baby arrival, car repair, medical treatment and so on.
Payday loans usually last from 14 to 21 days and you will need to pay the whole sum once you get your next paycheck. If you can not meet the predetermined date of repayment, you always have the option of extending the loan. Keep in mind however that the longer you extend the loan the more you will have to pay.
Payday Loans And How They Work
Payday loans have such a name because they usually come due on the borrower's next payday. They're quite different from regular bank loans. Here are just some of the differences:
- Short terms. Payday loans have to be paid as soon as you receive your next paycheck. This means that the loan period is usually 2 weeks, although at times it can be as long as a month;
- Small amounts. There's a limit on how much money you can borrow. This limit ranges between $300 and $1,000, the most popular being $500;
- Few installations. You pay back the money bit by bit in installments with a normal bank loan. It's different with payday loans, because you have to pay back the whole amount at once;
- High interest. When you borrow money from a bank, the interest you pay depends on your credit rating and the type of loan you get. A loaner with a great credit score can usually get a 3 percent or less annual percentage rate. However, if you have a bad credit score, you will most likely have to pay 25 percent or more. All lenders are billed at the same rate for online payday loans. For example, you'll have to pay $75 in interest if you borrow $500;
- Credit score doesn’t matter. Banks check your credit score before giving you a loan to determine how much to charge you. And if your credit is very poor, there is no guarantee that you will be able to get a lot. And you don't need a good credit score or any credit score at all to get a payday loan. You don’t need anything besides a bank account, a verification of income and an ID proving that you are at least 18 years old. You can get your money in less than 60 minutes if you have all of the stuff that is required;
- Auto repayment. When getting a payday loan, you have to provide a signed check or other paperwork that allows the creditor to take money out of your bank account/. If you do not show up to repay the loan as scheduled, the creditor will either cash the check or collect the money from your account;
- Simply renewals. If you know that you won’t be able to pay your loan on time, you can extend it to a longer term. Keep in mind that you will have to pay a fee equivalent to your interest, and you have two weeks to reimburse the credit.
Why People Get Payday Loans
Payday loans are incredibly popular and it’s not a coincidence. There are many situations when payday loans can be of great help. Let’s take a look at the some of them:
- Buying groceries. Food and clothing are incredibly important for every person. However, prices keep raising, and you just don't have enough resources to get the products you need because of economic uncertainty. Online payday loans are great for people with a bad credit score as you get an additional budget to cover your existing expenditures.
- Unemployment. It can be a real challenge to go through an unemployment period. It is stressful not only financially, but also emotionally. And that’s when payday loans can help you out. First of all, you can get the money you need right away. Secondly, you can live like you did before you lost your job. Thirdly, it has a positive psychological effect and helps rethink your life.
- Debt Consolidation Loans. Some borrowers use payday loans to pay off another loan. Such loan may be used to repay the debt. And it could be another type of debt like a credit card. If this is the case, particularly if the loan's interest is marketed as less than the borrower owes on the rest of the debt, a payday loan can be reasonable
- Utility payments. We are all aware of the importance of paying in time for your house or apartment. If the payment is postponed, further penalties may apply, and the debts will rise rapidly. And unforeseen expenses may occur in the life of any person. If you are struggling, simply get a payday loan and all pay all the bills quickly. You will have to return the loan on the next paycheck.
- Avoiding confusion. Some may wonder why not borrow some cash from their family or friends instead of getting a credit. However, many people don’t want to ask their close ones for money. This is because if you borrow money, you owe to a certain company, and not someone you know personally.
- Paying off your mortgage. Many credit contracts are about private property. Therefore, if you miss a payment or two, you can lose your home or a car. Nonetheless, you should not worry because you can always rely on payday loans.
- Medical treatment. Not having a health insurance, medical emergency will always cost a lot of money. It could be between $2,000 and a few hundred thousand, depending on the type of the medical treatment. And just like it is the case with any other debt, if you don't pay the bill immediately, it builds up in interest. Payday loans can help with all that.
- Holiday gifts. Christmas is a goldmine for creditors. At this time of year people have to buy gifts for their relatives. Consequently, they get payday loans, as they often tend to be the best solution. You get the cash you need for the Christmas season, and then you can pay back what you owe in the new year after making some cash.
How Trustworthy are Online Payday Loans
You probably have hundreds of nearby paying lenders to choose from, especially if you live in an urban or suburban area. You can use the Internet to find a company willing to give you some money in pretty much any area.
However, not every payday lender is reliable. Looking for properly licensed businesses is probably the best way to tell the difference between a secure payday loan and a scam. All licensed payday lenders must comply with the federal government's laws. Thus, if use their services, you can be sure of safety.
One other quick way to check if online payday lenders are reputable is to see if they have a license. Most of the time such information can be found on the official site of the payday lender.
Finding a licensed borrower is not the only thing to consider when searching for safe online loans. Most businesses who qualify as lenders don't actually lend you money themselves. Some of them are platforms that provide online lenders with information about your personal loan. Thus, you should avoid giving out your personal information to websites that sell it to other companies. You never know who will get access to your personal data.
If you don't know what a website is about, inquire if it's a direct lender. A direct lender deals with all aspects of the process of borrowing. A direct lender will review your application, manage the approval process and give you the money. It is a simple process that makes sure your personal information stays safe. If you are looking for a decent online payday lender, make sure that:
- The lender is approved in your country;
- The creditor is directly from the company;
- Your personal data will not be revealed to third parties.
Requirements to Get a Payday Loan
If you are serious about getting an online loan same day, you will need to provide the following information:
- Home address;
- Source of income;
- Social security number;
- Bank account.
There may also be cases when online payday lenders may not provide you with a payday loan, even if you have a bank account and a source of income. It can happen in the following cases:
- In case you don’t earn enough money. Usually, creditors require at least $500 in monthly net income;
- If you have a pending loan. Lenders use special services that are able to track loans;
- If you do not meet the repayment requirements. Most of the time lenders use their own algorithm to calculate the risk that you will not pay back;
- If you have recently had a bankruptcy;
- If you have been employed for a short period of time;
- If you have recently opened your bank account.
Amount of Cash You Can Borrow With Payday Loans
Payday loans usually range from $100 to $1000 or more. Loans are secure against your next paycheck, and that is usually the day that is due for repayment. The payday loan requirements are fairly straightforward. You must be an Australian citizen or resident, be over the age of 18, have a job, and a valid checking account. On some occasions, as part of the verification process, a payday loan company can ask you to show proof of income such as bank statements and pay stubs.
Payday loan companies in Australia can process your application online using Internet technology. In order to approve the loans, they review the personal and financial details electronically or sometimes ask for the faxes of the relevant documents. They typically confirm and authorize the loan within an hour and deposit cash within 24 hours or less into a checking account. Payday loans have saved a lot of people from trouble.
Pros And Cons of Payday Loans
- They are very easy to get. Payday loans have a clear advantage over any other types of loans, as they are easily accessible. In fact, most cash advance lenders guarantee access to cash within 24 hours, as well as an immediate decision on borrowing. There are also some that are available round the clock and have online apps. Thus, such loan applications may take as little as five minutes, unlike traditional loans, which may take a lot of time to get.
- There are barely any requirements. Standard borrowers typically need a Social Security number, proof of income, photo ID, a credit check and will check if you are able to repay a loan. It is different with payday loans, because there are a lot less requirements. You have to be at least 18 years old, have a Social Security Number, have a stable source of income, and a bank account. That’s it. Although having fewer requirements makes it a lot easier to get money, keep in mind that banks and other lenders have often put in place additional requirements for a reason.
- Your credit score doesn’t matter. Unlike it is the case with traditional loans, you don’t need a good credit score to apply for a payday loan. There is also no such thing as hard credit inquiry. However, there are only a few cases when payday loans will help you build a credit for future loans.
- It’s an unsecured loan. Contrary to car title credit, traditional car credit or mortgage, payday loans are not covered by personal property. In other words, the creditor can't take your assets if you don’t repay the loan.
- They are costly. Payday loans have high interest rates of around 400 percent on average. In comparison, many personal loans charge around 4 percent -36 percent interest, while credit card interest ranges from around 12-30 percent.
- You can easily get trapped in a debt cycle. A payday lender charges additional fees each time you extend (roll-over) a loan, raising your out - of-pocket costs to borrow the money.
- They have access to your bank account. Borrowers are often required to grant the lender access to their bank account in order to get a payday loan. While it is quite popular nowadays to set up direct deposit to make bill and loan payments, this account access functions a bit differently. Some payday lenders make you write a post-dated check–in this case, a check that is dated to be cashed after your next payday–when you get the loan. If you don't have enough money in your account when they cash the check, you can face expensive overdraft fees and bounced check fees from your bank as well as transaction fees returned or declined by the lender.
Frequently Asked Questions
What can paydays loans be used for?
- Payday loans can be used for a variety of purposes, but are especially helpful when unexpected expenses occur. Most of the time they are used for unpaid bills, medical expenses, or car repairs.
How can I apply for a payday loan?
- All you have to do is fill out the application form. Some lenders may ask you to fax the documents, but it can be done electronically as well. You will get the money as soon as you are approved.
What are the cases when you shouldn’t get a payday loan?
- Payday loans are pretty expensive and therefore should not be used to address long-term financial problems, fund daily expenses or purchase a big-ticket item such as a car or house. Consumers should not get a payday loan in case they don’t have a stable source of income, because late fees for payday loans will quickly build up, leading to debt.
What is the maximum amount of cash I can borrow?
- The amount of credit you can get depends on your salary and the overall financial situation. The maximum amount you can get is $100.
This is my first time getting a payday loan. What do I do?
- Before applying, it is very important to understand the procedure. The entire process will be online, so make sure that you have all the necessary personal documents and financial details. You will have to compare things like minimum income, terms of employment, qualification for Centrelink and whether a credit check is performed by the lender. Each lender is different, so make sure you read everything carefully before moving on. Take note of the terms and amounts of interest (to dates) and make sure you have enough to repay your loan.
Is it possible to pay out my payday loan early?
- Most payday lenders make it possible for customers to pay their loan early without any additional fees. That said, you will still have to pay the full amount of the credit contract. If you need to organize an early payment, contact your payday credit provider.
How quickly will I get my money?
- Most payday lenders will evaluate a request and respond within 60 seconds. It may take longer, however, if the creditor requires additional supporting evidence like proof of income or employment via bank statements or payslips. Usually, if approved, customers can expect funds within one to two business days in the nominated account.
Under government law, all small amount credit providers have to check your bank statements for 90 days. This is to check that the loan and the repayments can be serviced. Many borrowers use electronic confirmation via Credit Sense instead of faxing or emailing such statements to the bank. Credit Sense uses 128-bit security authentication to provide bank statements to the customer in a safe manner. Bank and login information isn’t stored.
Is it possible to get another payday loan if I already have one?
- Payday loans are governed by the law and intended as a "stop-gap" solution to financial issues. There are different restrictions on borrowing more than one loan at a time.
I have problems with repayments. Can I renew my payday loan?
- You can't renew or roll over your loan in accordance with Australian government regulations. You will first have to pay off your current loan and then reapply (after assessing your current financial situation) if you want to receive another payday loan.
How good of an idea is it to keep taking payday loans?
- In case you make all your repayments on time, you may be approved by a creditor for another loan. Some lenders have additionals bonuses for constant borrowers such as increased borrowing amounts and faster financing. Nonetheless, these loans are not a long-term solution and you may want to reassess your expenses.
Can I be sure that my personal information stays safe?
- Yes, because Australian loan companies use a secure online platform to keep your information safe, such as McAfee, Norton, or Verisign. Payday loan applications are usually made via a secure online request form to protect the privacy of the borrower. These systems use a 128-bit safe server and SSL encryption to make sure the personal data stays safe. Payday lenders will require a snapshot of your account during the last 90 days to verify their applicants income.
I have recently changed my bank accounts. Am I still eligible for the loan?
- Payday lenders require at least 90 days of bank statements in compliance with government regulations. In case you have just changed your bank accounts, you can get in touch with your old bank to obtain the necessary bank statements.
What if I don’t repay the loan on time?
- If you are unable to repay the loan on time, you will face additional charges and interest. Before a loan offer is accepted, these future costs will always be disclosed. You should speak to your creditor if you want to negotiate a new repayment schedule.