So, you are stuck on how you can apply for a payday loan in Australia. In addition, you might be wondering where and how to start applying for the loan. And your biggest worry could be whether the lender you choose will approve your payday loan. It’s very frustrating to apply for a payday loan at the time of your emergency, and you end up getting nothing. So, I will take you through the best procedures that you should take to ensure that you get the payday loan that you need in Australia.
Now, you don’t have to worry any longer because, in this post, I will show you the best criteria to use when applying for a payday loan in Australia.
But first, I need you to understand payday loans. So,
Table of Contents
- What are payday loans?
- How do you apply for a payday loan in Australia?
- Steps to take towards getting a payday loan
- Bottom line
What are payday loans?
Let me say that a payday loan is a short-term loan that you get and repay in two weeks. Unfortunately, the loans have very high-interest rates because the lenders claim to be dealing with high-risk clients.
The payday lender may require you to write a post-dated check that they will deposit on your next payday. You will have to repay the whole loan amount in total plus the interest rates. So if you need a long-term loan, then payday loans may not be an option for you.
How do you apply for a payday loan in Australia?
If you want to apply for a payday loan in Australia, there are requirements that you should meet so that the lenders may consider you.
1. You must be a Australia citizen
The Australia payday lenders will only give you a loan once you have valid proof that you are an Australian citizen and resident. As you all know, different countries/states have different rules concerning payday loans. Therefore, the lenders in Australia will need to deal with their fellow citizens as well.
2. You should have more than 18 years
If you are a minor, no lender will consider giving you a loan. So, before applying for a payday loan in Australia, ensure that you meet the age requirement.
3. You must have a stable income
Payday lenders do not require collateral when approving your loan. Instead, they depend much on your income. So you must provide your bank statements to prove that you have a steady source of income.
4. You should have an active checking account
The lenders will need you to have a valid and active bank account. Of course, that’s where you will get your funds. And still, they will deduct payments from the same account.
5. Provide valid identification document to the lender
The lender will not risk giving you a payday loan without you proving your identity. So, you must first be ready to verify your identity before you decide to get a payday loan.
Steps to take towards getting a payday loan
1. Check your credit score
Before you start to apply for a payday loan in Australia, first consider checking your credit score. This plan will help you know the amount of payday loan you may get.
Although payday loan lenders offer people with bad credit loans guaranteed approval, they also conduct soft credit checks to know your creditworthiness. So, to avoid any disappointments, know where your credit score stands.
2. Know your lender first
If you are dealing with online lenders, ensure that you first research more about the lender. It’s good to know the credibility of your lender before you can decide to borrow money. This criterion will help you to avoid con artists who come in the name of helping you get a loan.
3. Compare terms from different lenders
Don’t just make an abrupt decision to get a payday loan. Get a list of payday lenders in AUSTRALIA and compare the loan terms of each. Choose the lender who fits well with your budget.
4. Know the interest rates
Before you dip your feet into a bottomless pit, knowing what you are getting yourself to will be advisable. As you may know, payday loans have very high-interest rates, and you repay them quickly. So, ensure that you are comfortable with applying for a payday loan in Australia.
A payday loan in Australia should be the last option that you have. However, remember that payday loans have very high interest rates, which may lead you to a cycle of debts. So, ensure that you start saving money for emergency expenses to avoid getting into a payday loan trap.
You may also read: Payday Loans Bond: Why It Is So Important