Payday Loan Eligibility
Wondering how to qualify for a payday loan? Well, it’s pretty easy, and you’ve come to the right place.
The good news is that Australian payday loans are the bee’s knees when it comes to fast finance. Because of the way these products are structured, you can pay them back as quickly as you need – and save borrowing costs. Not only that, but payday lenders offer easy internet access and quick loan applications. Many payday loan users get their cash the same day, and some within hours. Payday loan options in Australia couldn’t be more convenient or user-friendly. If you’ve been wondering about your payday loan eligibility, fear not – the chances are you’ll qualify. Get the lowdown on nailing your application in this guide.
The basic requirements for payday loan borrowers
The primary requirement for being a payday loan borrower is that you be able to afford your repayments. Today’s payday lenders are responsible lenders. They’re required to be licenced by the Australian Securities and Investments Commission and take consumer welfare very seriously. That makes for very accessible and fast loan products. You get assessed based on the documents you supply to the lender. Turnaround times are minimal, and you can generally expect to receive your funds the same day.
As long as you’re an Australian permanent resident or citizen and over eighteen, that’s a good start. Show some form of regular income for the past few months; you’re almost there. Lenders use your bank statements to check current borrowing levels. They’ll also look at your credit report to make sure you’re not using too many short-term loans.
Payday loan eligibility and the application process
There’s no need to rush a payday loan application. Most lenders ensure funds are in place on the same day you apply – and sometimes, the process is even quicker. The fastest way to get your money is to send everything your lender needs. One good strategy for speeding up your payday loan is to understand which documents your lender requires – and why they’re necessary:
- A driving licence, passport, or a government-issued ID card: the reason for this is to establish and confirm your identity. Your lender will also seek to do that so they can check they’re looking at your credit report, and not someone else’s
- A recent utility or phone bill: your lender will need to see evidence that you reside at the address you give on your application form
- Payslips, if you’re employed: your lender will ask for payslips because it’s a reliable way to work out precisely what you earn. When combined with your bank statements, it’s easy for your loan provider to see exactly how much income you get regularly
- Centrelink Income Statement, if you receive benefits: whether benefits form all or some of your income, a statement helps to confirm the amount. In the absence of or addition to payslips, your lender can be confident you earn enough to pay your loan back.
- Your previous three months worth of bank statements: bank statements form an important part of your lender’s decision. That’s because they provide a fuller picture of your existing financial commitments. From your bank record, a loan provider can work out your disposable monthly income. By deducting your regular expenses from your regular credits, your lender can construct a very reliable assessment of what you can afford.
Payday loan eligibility and avoiding common mistakes
If there are any gaps in your application, your lender will have a loan officer contact you for more information – and approval just takes a little longer. The best way to avoid any delays with your payday loan application is to prevent these common mistakes:
- Read the application form carefully: Don’t miss any answers. Sometimes – especially if you need funds for an urgent reason – it’s tempting to fill out the application too quickly. If you miss anything out, your lender will need to follow up – and that will just make things go slower
- Multiple jobs or forms of income: If you hold down more than one job, or you get income from an investment – if any of your sources of income might be unclear when your lender checks your documents – make sure to say so on your application form
- Explain unclear debits or expenses: Just as with forms of income, it’s essential to make assessing your outgoings easy for the loan provider too. Look at things like your lender will, and provide as much information about account debits as you can
- Centrelink Income Statement: Don’t forget to upload this if you need to. If that’s the case, it represents an integral part of your application. You can download it online by linking your MyGov and Centrelink accounts
Do I need security for payday loans in Australia?
No – payday loans are unsecured. You can borrow between $2,050 and $5,000 without any collateral. However, securing a different type of loan might see you get a better rate from the lender. That’s because it lowers their exposure to risk.
Having the choice to take payday loans up to $5,000 without securing them against a purchase makes them very flexible. You can buy or pay for anything you like with a payday loan. Thousands of Australians use them to cover unexpected bills, make planned purchases, and even go on holidays.
How quickly can I get funds when I apply for a payday loan?
Taking out a payday loan really couldn’t be much easier. Online lenders with portals that allow complete internet-based applications enable swift access to cash. Loan products are also geared towards quick and convenient lending. For borrowers, it’s easy to see what a loan will cost, and payday loan eligibility is straightforward for loan providers to gauge.
The only thing that can slow down the process is a lack of information or a mistake when you apply. It’s wise to take care when you fill out your application and submit documents. If you make sure you’ve covered all bases – and supplied all the information your lender requires to make a quick decision – then your answer will be pretty quick too.
Helpful small loan guides
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.