Payday Loans Australia
Borrowing options for payday loans in Australia mean there’s life beyond your pay cycle. Find out why in our guide.
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Cash flow can stop you from doing all sorts of things – if you let it. Often, we can afford to buy something, but our pay date just doesn’t allow us to do so when we want or need. It’s not always practical to take out a long-term personal loan to cover smaller purchases – and not everyone wants to take on long-term debt anyway. That’s why borrowers are using payday loans Australia wide to cover expenses and buy luxury items outside their pay cycle. Applying for a payday loan is fast and convenient. In this guide, you’ll learn how borrowing shorter-term can help you extend your pay cycle.
Quick-glance guide to Australian payday loans
Payday loan lenders in Australia don’t mess around. If you’ve been searching for a method to borrow funds short-term in Melbourne, Brisbane or Sydney that fits your busy life – congratulations, because you just found it:
- Borrowers accessing payday loans in Australia can apply for amounts as low as $2,050 up to $5,000.
- Fees on payday loans all get capped as a percentage of the loan amount. You’ll pay a maximum of 48% per year for monthly fees and no more than $400 in establishment fees.
- Repayments for small payday loans range from just 16 days up to a two-year term.
- Payday loans in Australia are flexible and designed to suit your circumstances. You can choose to arrange repayment dates and frequency to suit your pay cycle.
- Applying for a payday loan in Australia is as easy as getting online. You can use your phone, tablet or computer to submit documents and fill out the form – even to sign the lender agreement digitally once you’re approved.
- Getting your payday loan cash is fast. Your lender will ask you to nominate a bank account when you apply. As soon as your loan agreement has been reviewed, your funds will get transferred electronically. That usually happens same day, sometimes even quicker.
Who can get a payday loan, and what will I need to apply
To apply for a payday loan in Australia, you need to be a citizen or permanent resident and over 18. Beyond that, you need to have a regular source of income (which can be from a job, benefits, or a combination of the two). It’s far quicker to arrange a payday loan if your money gets paid directly into your bank account. Cash payments are harder for lenders to verify online – and that’s where the payday loan application takes place. Your borrowing activity during the previous 90 days is also important. Lenders won’t want to see more than two similar loans in that period and they won't approve you for a loan without a credit check.
When you apply for an Australian payday loan, everything gets done digitally. That means you can apply for a cash loan if you live in Darwin, in the remote town of Burra or out on Kangaroo Island. It’s convenient and quick, and most applicants receive funds the same day. You’ll need to supply a valid email and phone number and make yourself contactable during the few hours the process takes. It’s also useful to know which documents you’re likely to need:
- Passport, driving licence, or government-issued ID card
- Proof of current address, such as a recent utility bill
- Payslips, if you’re employed
- Centrelink income statement – if part or all your income is benefits
- Your Medicare card
- Your previous 90 days of bank statements.
What are the pros and cons of payday loan alternatives?
It’s always useful to examine all your options before you make any borrowing decisions. Australian payday loan borrowing options are no exception to that rule, so let’s consider some of the alternatives available:
Personal loans
Personal loans are an excellent way to spread the cost of all sorts of items and expenses – from cars to boats to computers.
Cons include that loan amounts are nearly always for sums higher than $5,000. Repayment terms also tend to be longer than with payday loans. You’ll need a good credit history even to consider applying for one.
Pros include that lower interest rates work well with longer-term borrowing.
Credit cards
Credit cards are handy to have in your wallet for unexpected costs – and planned purchases when you don’t want to raid your bank balance.
Pros include that they’re an open line of credit, so you don’t need to keep applying when something comes up. They’re also good for your credit rating if you can stay on top of the balance.
Cons include that interest rates can work out costly when balances mount up and stick around – and can amount to a whopping 22% APR. That’s when an open line of credit can bite you. Credit cards often come with annual or monthly service charges too.
Overdrafts
Overdrafts are another convenient way to provide yourself with some breathing space around your regular finances.
Pros are that once arranged, you can keep them available for a period. That frees you up to dip below a positive bank balance temporarily. The cost of borrowing is also relatively low.
Cons are that you’ll need a good, ongoing relationship with your bank to get one. You’ll also get turned down for an overdraft if your credit rating is less than ideal. Most financial institutions consult your credit report before offering any line of credit.
Who uses payday loans in Australia, and for what?
Payday loans may be easy to arrange and fast to complete – but that doesn’t mean they’re an inferior product. These days, there’s no typical payday loan user. Thousands of Australians regard them as the automatic choice for shorter-term finance. That goes for the affluent, those with poorer credit ratings or unemployed, and younger and older borrowers too.
You don’t get tied down long-term with a payday loan, and amounts, repayments, and schedules are very flexible. Most payday loans are unsecured too, which frees you up to spend them on anything you need. The application process is speedy, and access to extra cash when you need it is fast as a result of that. Australian payday loans really fit the bill – whether that’s for a new computer, the dentist, or unexpectedly high electricity charges.
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Disclaimer:
The information on this website is of general nature and does not take into consideration your objectives, financial situation or needs.
For loans between $2,050 and $5,000, the APR is between 21.24% (minimum) and 48% (maximum) per annum. Comparison rate of 65.4962%. Minimum term is 16 days and maximum term is 24 months. The cost of the loan is a $400 establishment fee and monthly interest charged on the amount borrowed. For example, a loan of $3,000 over 3 months with an APR of 48%, (comparison rate of 65.4962%), will have an establishment fee of $400, monthly repayments of $1,225.20. Total repayments of $3,675.60 and total interest payment of $275.60.
Warning: A comparison rate indicates the true cost of a loan. Comparison rates are true only for the examples provided and may not include all fees and charges. Different terms, fees or loan amounts might result in a different comparison rate.
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