How to Apply for a Payday Loan
Learning how to apply for a payday loan is easy, takes minutes and the requirements are not as many as those for a bank loan application. Anyone, even those who have never applied for a payday loan, can do this with a lot of ease. Here are the steps to follow:
- Fill in the Application Form – We offer a convenient application form that connects you with the best lenders in Australia. Key notes to understand are the interest rates charged and the duration of the payment. Once you fill in the application form and submit all the required documents, the rest is easy and takes a matter of minutes.
- Wait for the Loan to be Approved – The lender will go through your application and within minutes conclude if it should be approved. This will be communicated to you immediately. If you qualify, the lender will ask you to reauthorize the whole transaction.
- The Money is Transferred to Your Account – This is done electronically. Within minutes, you can access the cash in your account. The whole process might take less than an hour but lenders assure you of a same-day service. This means that you will get the cash the same day you made the application as long as it is not on a weekend or a public holiday.
What Should You Ask Yourself When Applying For A Payday Loan?
Just like any other loan, a payday loan can cause stress when it comes to making the payments. Take time to answer these questions before you apply for the loan.
- Why do I need the loan? Do you really need the payday loan? Can the need you have for cash wait until you get paid? If it cannot wait, you can go ahead and apply for the loan. Only apply for payday loans when it is absolutely necessary or when other options of getting cash fail.
- How much money can be tempting? Do not apply for more than you require. Once you access the need, you will be able to know how much you require to sort it out. Remember that you will eventually have to pay back this is money with an interest on top. You do not want to strain when paying back the loan.
- How will you pay back the loan? This is an important consideration. Remember that you will have to pay the money from your paycheck. Will you be able to cater to all the monthly bills and expenditures and still have enough to pay the loan? You do not want to get into a borrowing cycle. This can be very expensive especially because payday loans charge a higher interest rate.
Can I Apply for a Payday Loan?
Almost every Australian citizen can qualify for a payday loan. This is because of the easy terms and few requirements. Immigrants as well can qualify for the loans as long as they are in the country legally and so can tourists. What are the requirements?
- Be over 18 years old.
- Have a reliable and verifiable source of income. This can be a job or any other source such as benefits. You might be requested to submit a 6 months bank statement if benefits are your primary source of income. Some lenders may also ask you to indicate a second source of income.
- Have a bank account. You might also be requested to provide a bank statement.
- Have identification documents
- Have a Medicare card.
- Provide proof of residency.
Key Features to Note
Knowing how to apply for a payday loan is simple, but there are a few things to keep in mind. Payday loans are instant loans. This means that you are supposed to get the money the same day you make the application as long as there are no foreseen bank delays. Here are some of the features that make payday loans stand out from other types of loans.
- They are short-term loans – A payday loan is meant to be paid within 30 days of loan disbursement.
- Lower amounts granted – The maximum amount you can borrow is $2000.
- Higher interest rate charged – Payday loans have higher interest rates than other types of loans because of the high risk involved for the lender.
- No collateral required – You do not have to guarantee the loan.
- No credit history check – Even those with a bad credit history can qualify for a payday loan. Lenders do not take into account your credit history because of the short repayment period, so they can offer no credit check loans.
Advantages of Payday Loans
- They are instant loans: You can get the money the same day you submit the loan application.
- Fewer requirements: Other financial institutions such as banks consider more requirements than payday lenders. This makes the process tedious and long.
- Payday loans no credit check: If you have a bad credit history, you can still apply for the loan and get it approved. Banks cannot grant loans to clients with a bad credit history no matter how well they are currently doing with their finances.
- Electronic Process: You can go through the whole process in your house or office and even receive the money without stepping a foot into the lender’s office.
- Can improve your credit score: When you make the loan repayment smoothly, this adds points to your credit score. Future lenders will be able to access this information.
You can only borrow a single payday loan at a time. This is according to the regulations set forth by the Australian Securities and Investment Commission (ASIC).
Note that a payday loan can affect your credit history positively or negatively. If you require any financial advice, you can contact the Financial Counselling Australia for free advice among other services. This will help you learn how not to depend on credit for sustenance.
There are other options you should also consider before settling on a payday loan. Payday loans should be the last result. This is due to the high-interest rate charged and the short repayment period of 14 to 30 days.