If you’ve found yourself in a bad financial situation and want to avoid getting into even more debt then you should consider getting a bad credit payday loan. Everyone runs into unexpected financial problems at one time or another. Your car may need to be repaired, or you need to pay off an unexpected medical bill. There are many things that can suddenly come up and leave you needing money before your next payday. If this happens to you then there are options open to you. One such option is getting your hands on a bad credit cash loan.
Before we continue we have a quick warning about borrowing. You need to ask yourself if you really need a loan today. Borrowing a small amount of money can be expensive and it may not solve the money problems you’re currently facing. Please check the options you have before deciding on taking out a loan.
If you would like more information about alternatives to borrowing and ways you can manage your bills and debts then please call 1800 007 007 to get free independent financial advice. If you’re having trouble paying your utility bill then talk with your suppliers for electricity, gas, water or phone company to see if you can arrange a deal. If you are on government benefits and you need money fast you can phone 13 17 94 to see if you can have your Centrelink payment sent early. If you’re unsure then head to the MoneySmart website provided by the government to find out more information about small loans and alternatives to them that could be a lot of help.
These payday loans, also sometimes called a cash advance loan, is when you borrow a small amount of money from a lender for a short amount of time. Because of the shorter time limits on them they usually also come with higher fees. A payday loan is usually for between $100 and $1,500 and the loan period is usually between 16 days and two months. In some cases you can get a longer period of up to 1 year to pay back the loan though.
Taking out a payday loan is a quick way to pay off some small and sudden expenses. There are some drawbacks to taking out such a loan however. The biggest concern when it comes to payday loans is the higher interest rates attached to them. You will typically pay back the loan by setting up direct debit with the lender for the money to come out automatically after a set period.
A payday lender will lend money with different lending criteria than a more typical lending institution like a bank or credit union. This is why they are able to offer money to people who have a poor credit rating. A payday lender will usually look only at your ability to repay the loan and how your finances look when you actually apply rather than how your credit rating as a whole looks. You will usually have to provide a lender with information about your current finances including bank statements for the past 90 days. This is just one of the things they use toe decide whether or not you will reasonably be able to pay back the money.
You should take a careful look at how your current financial situation stands before taking out a payday loan. Ask yourself if you really need the money and can reasonably afford to repay it. If you’ve got a particularly bad credit rating but do currently have a guaranteed income then you may want to consider a no credit check payday loan.
There are a number of reasons why a person would consider applying for a payday loan. The following are some of the things you need to consider before applying for any kind of payday loan.
There are many payday options online so it’s difficult to choose just one. This is why you need to compare the different loans out there so that you can pick the right one for you. Here are some things you have to do.
It’s important that you research the lender before doing business with them as they are going to have access to your bank account. Take a good look at their website and read their policies. There are some online lenders that will let you chat live with a member of their support team and get answers to any questions you have. You should also search for the lender online and see if you can find any reviews or testimonials from people who used them. It’s easy to find all this information online so ensure that you do some research first.
Because you’re getting the money so quickly you can expect to pay high fees and interest rates. The Australian Securities and Investments Commission has laid down rules that say a lender can only charge up to 24% of the initial loan amount per month in fees. There may also be other government fees and charges, along with default fees and other potential expenses.
Do you need the money as quickly as possible? Or can it wait a day or two? Find a lender that can get you the money when you need it. Some lenders can get you the money in a matter of hours as long as it is a business day.
Some lenders will let you extend the loan term up to 90 days if you need more time to repay it. If you do that you can expect to have some extra fees lumped onto your loan though. You should always ask what will happen if you fail to make a repayment on time. You should also ask the lender if there are any hidden fees that might come up that could hamper your ability to repay the loan. You should know how long it should take you to repay the loan so that you can avoid taking out an extension.
It can be a bit tricky to find and apply for the right payday loan with all of this choice out there, especially for a first time borrower. So take advantage of comparison websites to get the best deal for you. Just follow the link to the website of the lender to find out more about that particular lender and apply for the loan.
You should also always take a look at your personal financial situation so that you know for sure you can repay the loan. While each lender will have different requirements you need to be a permanent resident or a citizen of Australia, over 18 years old, and currently employed at the very least to get a payday loan.
When you apply for a payday loan, you’ll be protected by bank grade encryption during the application process. This means that your personal and financial details are as safe as they would be at any large bank in the country.
To make sure of your security, it’s also important to check out the credit provider before committing to them. Do they have a street address and contact details, for example?
Credit providers in Australia are required by law to lend money and extend credit in a responsible manner. This means that not everyone will actually qualify for a loan, and a credit provider would be irresponsible if they:
It’s important to know that if fifty percent or more of your income comes from Centrelink benefits, any repayments on the payday loan being applied for must not be more than twenty percent of your total income. You will not be offered the loan if this is the case. .
There are regulations that restrict lenders from charging too much in fees. The fees you pay always depend on the amount of credit extended, but providers can only charge up to the following amounts: