Do you need some extra cash for utility bills, medical emergencies, or debt consolidation? It’s estimated that Australia’s payday market was worth over AUD1.7 billion in 2019. These Cash Loans can be helpful when you need some quick money before your next paycheck. When considering such loans, you should know which factors to consider to get the best loan for your needs:
Consider first how much money you need and how much a lender can lend. In most situations, borrowers need up to AUD2,000 or so for situations like medical bills, auto loans, and mini-vacations.
The loan range offered by different lenders can differ significantly. However, since these short-term loans are usually for emergency expenses, the amount of money that borrowers need tends to range from a few hundred to a few thousand dollars. It’s also important to factor in the interest rate charged to calculate the loan’s total cost.
In Australia, the maximum fee cap per AUD100 borrowed on payday loans is 24%. You can find lenders that offer lower rates. As always it’s essential to find out the full fees and all the other charges owed for the loan. Doing so can make the process easier when calculating the total repayment amount.
In some cases, you can avoid all additional fees through methods like making early repayments. Doing so not only helps you to save money but also avoids extra fees being added to your loan amount and interest rate.
Lending companies tend to offer a simple application process, which differs from bank lenders that can require lots of paperwork. When you need emergency funds, it’s important for the application process to be as convenient as possible.
Lending companies sometimes offer different application options, including online and on-site such as kiosks. This offers convenience since nearly 90% of Australians (2020) are active internet users, according to Statista.
If you’re approved, the processing time is also something to consider. Approved payday loans are often processed within an hour or even minutes due to high-speed online transfers. This differs from bank loans that can often take multiple days to process, transfer, and clear.
Credit Rating System
There are different types of systems that lending companies use to conduct credit rating. One type is based on your past credit history. In this system, having good or bad credit can affect your ability to secure a personal loan.
Another type of credit system focuses on the applicant’s ability to repay the loan. One of the various factors weighed includes having a regular income source.
When picking a small loan lender, it’s important to look for flexible repayments. In general, the loans must be paid within a few months. However, there are various factors involved, including the loan amount. The term “payday loan” suggests that the borrower repays the loan after receiving their next salary. However, this is generally for smaller loans like AUD300, for example.
When picking a personal loan provider, you should consider how much industry experience a particular company has. This helps to provide benefits in terms of loan types, interest rates, and customer service. It can improve your overall experience when taking out a small loan.
If you’re looking for some extra income, short-term Cash Loans might be the best option. It’s important to consider issues like interest rates, processing time, and repayment schedule to pick the right lender. It could make today your next “payday.”