Table of Contents
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.
Guaranteed Payday Loans in Australia
As easy as it is to apply for and get a payday loan in Australia, it is even easier to find numerous online payday lenders with different payday loan packages. Below are some of the best online payday loans in Australia:
- CityFinance: One of the best online payday lenders in Australia is CityFinance. They provide quick loans without stress and pride themselves in customer satisfaction. They offer payday loans between $500 and $5000 with flexible repayment terms.
- CashnGo: This online payday lender grant loans between $300 and $2000 with an application process that shows you all the costs tied to your loan upfront. A loan length can be up to 4 months and these loans are usually granted in less than an hour. You can easily apply online or visit some of their Self Service Kiosks located in Greater Sydney. Also, they offer great interest rates, compared to other payday lenders.
- Fundo: Another amazing online payday lender is Fundo. They offer loans between $300 and $2000 with favourable interest rates. Payments can be made in instalments between 61 and 180 days. With this lender, the status of your credit is not a factor that is considered when calculating your interest rate. They don’t apply high-interest rates because your credit is not good enough, instead, they consider your ability to repay the loan. They have an easily navigable website where you can easily manage your loan.
- Money Plus: One of the unique features of this platform is that, Money Plus offers between $100 and $2000 online and up to $6000 if you visit one of their twelve branches across western Sydney. Borrowers can always choose to either apply online and get a loan in 24 hours or visit a physical location and get a loan in half an hour. They are popular for having outstanding customer service that keeps bringing borrowers back whenever they need their services.
- Cigno: This online platform offers loans of up to $1000 with great interest rates and wonderful repayment plans. Cigno has a high approval rate and the application process is so easy that you can seamlessly access the platform whenever you want. Loans are approved in a matter of hours and money is immediately disbursed.
- Cash Train: A trusted online payday lender that offers payday loans of up to $2000. The application can easily be done online or you can visit one of their branches. According to reviewers, the interest rates charged by this payday lender is fair and their customer service is excellent.
- Cash Australia: This is another wonderful online payday lender that you can trust to give you the best deals. They offer between $300 -$5000 with encouraging interest rates, as long as you have a stable income with at least 50% coming from employment. Their payback period ranges from a month to 2 years.
- Jacaranda Finance: Famous for its short approval times, this payday lender offers between $5,000 and $15,000 with flexible repayment terms. The length of the loan is usually between one and two years and their interest rate is nice. Once your application is approved, you can expect to receive funds as soon as possible.
- Sunshine Loans: Sunshine loans offer payday loans between $150 to $2,000 with a loan length of nine weeks to sixteen weeks. Loans here are quickly approved so you can use it for your most pressing needs.
- Fair Go Finance: Here, you can borrow between $5,050 and $10,000, and pay back between one to three years. Fair Go Finance provides payday loans for all borrowers, regardless of their credit history. The only difference is that your credit will determine the interest rate that will apply to your loan. The interest rates here are fixed and getting a loan is usually very easy, just apply on their website.
How To Compare Payday Loans
To get the best, below are some of the factors that you should consider when comparing loans from different payday lenders:
- The loan term: You should consider the length of the loan, as loans with shorter terms often come with lower fees and rates compared to ones with longer terms.
- The amount of the loan: Another factor to consider is the amount that each lender is offering.
- Turnaround: You should also consider how long it takes each lender to disburse the needed funds.
- Interest rates, fees, and charges: Ensure to get all the information regarding the interest rates, fees, and charges that will be applied to the loan.
- Application process: Find out each lender’s mode of application. The majority of payday lenders have an online application process while some also have physical branches where you can walk in and apply.
- Repayments: Find out the cost of your repayments so you can plan your budget around it.
Payday loans can be a lifesaver, especially if you find yourself in a pinch and need a quick financial solution. However, it is wise to find out all there is to know about payday loans before applying for them.
To make the process easy for yourself, take your time to digest this article on Guaranteed Payday Loans in Australia.