Payday loans are commonly sought by people who have to pay out on an expense that has come upon them suddenly and abruptly, like a utility bill, hospital bill, a fine or expiation, or a repair and maintenance job around the home. The loan is usually between $100 and $2000 and has a total duration of between 16 days and one year.
If you want to approach a credit provider for a loan, it’s worth knowing that most of them will not do a credit check on your credit history. This is called a no credit check loan. These types of credit providers are more interested in your current financial circumstances, making them different to banks and other financial institutions. What this also means is that if you have bad credit, you can still find a no credit check provider to give you a loan.
Here’s what to consider if you want to find a no credit check payday loan:
Before being approved for a loan, the provider will look at how much you are paid by your employer and how regularly you are paid. The provider will then lend you a total amount of money based on this information; so if, for example, you get paid a total salary of $35000 per year by your employer on a monthly basis, the credit provider would take this into account and determine how much they can lend you and how long it would take for you to repay it back to them.
The truth is that there is no point in a credit provider offering you a payday loan without you being able to repay it. They want you to be able to pay them back, which is why many of them provide a plan of repayments, frequency of repayments, and then direct debit this amount from your bank.
There are many payday credit provider available, and it’s important to find the one that is best for you and your financial situation. Consider the following when choosing a provider:
Fortunately, payday providers in Australia are restricted by ASIC on what they can charge for fees. For a credit extension of less than $2000 that has a total term of between 16 days and 12 months, credit providers can only charge:
Ensure that you find out what the fees and repayment terms are before signing on the dotted line.
Many providers of payday loans only operate online, so it is not always an easy task to find out whether they are legitimate or not. In cases like this, the best thing to do is to go to their website, see what their terms and conditions are, and read carefully through their “About us”, “FAQ”, or “Help” pages if they have them. If they have listed a physical address and other contact details, make sure you communicate with them.
It is also worth checking out online reviews and testimonials from other customers if they exist. Also check to see if they offer bank grade encryption and security as part of their website.
It is also worth knowing that these credit providers cannot charge interest in the loan amount, but the cap on these fees doesn’t apply to credit and loans extended by institutions like banks, building societies and credit unions.
If you fail to repay the loan on the date that it is due you will be charged a capped fee until the amount is paid in full. This is why it is a good idea to find out what the fees and repayment terms are before signing on the dotted line. From July 1st 2013, the amount that a provider can charge if you fail to repay the loan is twice the amount originally loaned.
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: