Guaranteed Payday Loans in Australia: All you need to Know

When emergency expenses seem to be popping up from every corner and payday is still far away, you can always count on Payday loans to provide you with a quick financial solution.

This is a simple loan that doesn’t entail a rigorous or long process before it gets approved. You don’t have to complete long forms or wait for days before getting the loan.

Getting a payday loan in Australia these days is incredibly easy, as all you need to do is go online and search for Payday loans in Australia, and you will get access to different payday lenders. It is then up to you to pick the one that is suitable for you.

Payday loans have been around for a long time and don’t seem to be going away anytime soon.

However, you should know that as advantageous as payday loans can be when you need urgent cash, they can also be quite expensive.

You need go be careful with payday loans as they can pile up over time and accumulate into a huge debt for you.

To enjoy the full benefit of instant payday loans while simultaneously avoiding the pitfalls that come with them, read through our helpful article on Payday Loans in Australia.

What are Payday Loans?

These are short-term personal loans that can be quickly attained to solve emergency financial needs. They are called payday loans because both the repayment date and the amount you can borrow are usually based on the amount you earn and when you will receive it.

Although lenders are forbidden by law to charge interest on payday loans, they still find a way to tack on some fees that eventually make these loans expensive. These fees are usually hidden, which is why borrowers don’t know about them until it is too late.

The Australian government has capped the charges that payday lenders are allowed to charge on a payday loan under $2,000 in value. Consequently, payday loans are granted with a maximum 20% establishment fee and a 4% monthly interest rate.

Due to the expensive nature of online payday loans in Australia, they should only be considered as a last resort, that is, after all, other options have been eliminated.

Payday Loans with Bad Credit

One of the upsides of payday loans is that you can qualify for them even if you don’t have good credit. Unlike banks, payday lenders have packages that let you borrow money even when you have bad credit.

How To Apply For A Payday Loan

Applying for a payday loan isn’t a complicated process, as long as you are eligible and have the necessary requirements. Here’s what you need to do:

1. Check online for payday lenders or visit payday loan stores and compare offers.

2. Apply online or in person.

3. Wait for approval as the lender evaluates your application.

4. Receive the loan.

Upsides of Payday Loans

You can get a loan even if you have a bad credit.
In times of emergency, you can get quick cash.
The application process is quite easy.
Getting a loan doesn’t require a collateral.

Downsides of Payday Loans

There are hidden fees which you might not know about until it is too late.
They can be very expensive.
They can ruin or worsen your credit if you fail to make payment.
Application and account-keeping fees can be quite high.
Due to how easy it is to acquire payday loans, one might get carried away and keep borrowing till one starts drowning in debt.

Eligibility Requirements For A Payday Loan

You must be 18 years and above.
You must provide proof of a steady income.
You must provide a bank statement of a minimum of 90 days.
You must be upfront about any existing debt.

Methods of Repaying a Payday Loan

There are different methods by which you can repay payday loans. Here are some og them:

You can give the lender access to your bank account, so they can withdraw their money once you get paid.
You can pay online through the lender’s website.
You can write a postdated check when applying for the loan, and the lender will cash the check once you get paid.
You can bring or send the lender your next paycheck.

Alternatives to Payday Loans

Before choosing payday loans as the solution to your financial problem, it is wise to consider other alternatives such as:

Personal loans.
Credit cards.
Overdrafts.