Can you get instant cash loans on Centrelink benefits?
If you receive Centrelink payments and need money to pay for an emergency expense such as urgent car repairs, replacement of appliances such as a fridge or washing machine, hospital bills, or urgent and unavoidable travel expenses. Though you may be eligible for a loan or advance payment through the Department of Human Services, these can take time to process. Those on pensions or payments through Centrelink may be eligible for instant cash loans or small personal loans quicker than applying direct to Centrelink. These types of loans are also available for people on low income and/or bad credit.
Loan options for people on Centrelink payments
There are many options for people on Centrelink payments to raise money in a short amount of time. One option is getting an advance payment from Centrelink. This may cover small expenses such as unexpectedly high utility bills, but your circumstances will dictate how much the government is willing to give you as an advance. You will also have to pay back this advance in instalments. This can be paid out of your future benefits in some cases and maybe interest free. No interest loans are available for Health Care Card or a Pensioner Concession Card or an after-tax income below $45,000, while low-interest loans are available to people with a Health Care Card or Pensioner Concession Card, and/or receiving Family Tax Benefit A.
You may apply for an advance once every twelve months. If another situation arises where you need money fast, your request may be denied.
Why choose Savvy for your instant loan?
Options for people on Centrelink payments to get the cash they need fast.
What you need to know about instant cash loans on Centrelink
If you are on Centrelink payments or benefits, here is our comprehensive guide to instant cash loans.
Why people on Centrelink benefits look for instant cash loans?
People on Centrelink benefits such as disability pensions, JobSeeker payments, the age pension and other forms of income are fixed; they come in set amounts each fortnight or month. Unexpected and urgent expenditures such as a higher than normal utility bill, emergency travel, medical bills, appliance failures, car breakdowns, bond payments, or any other type of bill that requires immediate payment is beyond the reach of many people on these benefits. One way to cover these unexpected bills is to take out an instant cash loan. These have a benefit of getting you the money to pay for the bill quickly, though you can apply for advances and loans through Centrelink or the Department of Human Services. People on Centrelink benefits may find it difficult to get approval for mainstream personal loans. Using a broker that can find lenders specialising in instant cash loans can help find the support you need without incurring higher than normal interest and/or the prospect of application rejection.
The limitations of instant cash loans for Centrelink claimants
These loans can range from upwards of $300 to $5,000, though eligibility requirements may apply. The bare minimum eligibility is:
Some loans offered by lenders will need to be secured against an asset, especially if you are looking to borrow a lot of money compared to your income.
- You must be over the age of 18.
- You must be getting regular income into a personal bank account for at least 90 days.
- You must be an Australian citizen or permanent resident.
- You must have a direct contact number so your loan consultant can ask you questions, if need be.
What about using a credit card?
Some people on Centrelink may want to take out a credit card to cover these emergency payments. Some banks may give “pre-approval” for credit cards which consumers can opt into. Other credit card providers may need you to apply through their online portal or in person. If the bill or expense is urgent, you’ll also have to wait for the credit card to be issued to you in the mail or in a branch. Credit cards are a type of “revolving credit” which doesn’t require you to pay back the balance in instalments. Most credit cards can be paid off with a minimum monthly payment, which can be 2%-5%.
The minimum payment may not reduce the interest paid on the debt. Instead, it might stretch it out indefinitely, which can mean paying hundreds or thousands of dollars in additional interest.
An instant cash loan is “instalment credit” that is paid off over time until the balance is zero. A credit card, if you leave the account open, can attract fees such as annual fees.
Some bills and services may not accept credit cards. Credit cards can be used to withdraw cash, known as a cash advance. Cash advances usually attract higher amounts of interest and do not have interest free periods (if your credit card has a feature.) This means you’re paying high interest as soon as you withdraw the money.
How it all works – applying for an instant cash loan on Centrelink explained
Curious to see how the process works? Here it is, broken down into easy to follow steps.
Check you are eligible
You will need to be over 18, getting regular income to an account for at least 90 days and be an Australian resident. You’ll also need a working phone or email so we can contact you.
You can apply for an instant cash loan using our secure application process. There’s no paperwork or waiting around in lines to access instant cash loans with Savvy.
Attach an asset as security (for larger loans)
If you are taking out a larger loan ($2,000+) security such as an asset may be required.
Get approval within an hour
You’ll know if you’re approved within 60 seconds. We’ll call, SMS, or email you the result. We’ll deposit your funds into your nominated bank account within 24 hours.