Quick Cash Loans
Times are hard for many Australian families. Job instability, stretched incomes and unexpected expenses can come together to create difficult times for hardworking individuals. Some people are lucky enough to have savings. Some people have credit cards or overdrafts that have been sitting unused and that can serve as a safety net for them. Others are not so lucky
If you are struggling financially and aren’t sure what your options are, don’t panic. For many people, quick cash loans offer a chance to get through a difficult period and get back on track.
Who Can Get Quick Cash Loans?
Cash loans are offered by a variety of lenders, including some that cater to those with bad credit ratings. The interest rates and amount available will vary depending on the borrower’s individual circumstances, but most people who have some form of regular income should be able to find a lender that will offer a quick cash loan.
These loans tend to be in the range of $300 up to $5000, with repayment over between one month and six months. Before you apply for a cash loan, it is a good idea to check your credit rating and make sure that your credit report is accurate. Any inaccuracies in your credit rating could have a significant impact on the interest you pay and on which lenders are willing to consider working with you.
To apply for a quick cash loan, you will need to meet some standard criteria:
- Be over 18 years of age
- Be an Australian resident or citizen
- Have regular income paid into a bank account – for example a wage, pension, or benefits
- Be able to provide three months worth of bank statements
- 100 Points ID
- Benefit recipients may be required to have access to MyGov
On top of the above, some lenders may have additional, more stringent, criteria. For example, credit unions may lend only to those who live in a given area or are a part of a specific profession. Some banks are more lenient when it comes to lending to their own existing customers. Some lenders may want a person with very poor credit to provide a guarantor.
Most lenders will perform a credit check, not only to check the credit history of the applicant but also so that they can confirm that the applicant is who they say they are. A person with a good credit history is more likely to be accepted for a quick cash loan from a mainstream lender. They are also more likely to get favorable repayment terms. Someone with a poor credit history can still find lenders that are willing to work with them. Cash Smart offers short term cash loans, for example, from $500 up to $5000, with varying repayment terms.
Cash Loans When Unemployed
On common misconception is that credit is not available to people who are unemployed. It is possible for someone to borrow money when they are unemployed as long as they have some form of regular income. Income from unemployment benefits, disability benefits, and pensions can all be counted.
If you are unemployed, contact Cash Smart to discuss your situation. Your circumstances will be assessed individually, based on your income and expenditure. You may be able to access an affordable cash loan.
How Much Can I Borrow?
The amount that you can borrow will depend on your credit history, current income, current outgoings, and other personal circumstances. When assessing someone for a cash loan, several criteria are taken into account. Cash Smart uses a set of criteria to work out whether a loan applicant is likely to be able to afford to make the repayments for the loan that they are applying for. As a responsible lender, the goal is to make sure that borrowers are not put under unnecessary hardship by taking out a loan.
Repayment rates vary depending on how much the applicant borrows, and how long the loan is for. Of course, people’s circumstances may change, and nobody can predict the future, however, by looking at the income, expenditure and past history of a loan applicant, Cash Smart can make an assessment of how much each borrower can likely repay.
For example, a $500 loan repaid over 6 months would see repayments of $120 a month. A $2,200 loan spread over two years would require payments of just over $170 a month. Before you choose a loan, make sure you are confident that you will be able to keep up the repayment schedule that is offered over the long term.
Consider Much You Really Need
Prospective borrowers should think carefully about how much they need to borrow, and how much they can afford to repay, as well as the total cost of the loan.
When borrowing, remember that you are taking out a loan and this will go on your credit file. When you have an outstanding loan, borrowing again in the future may be more difficult, so it is important that you borrow enough to actually do whatever it is that you are trying to do. Applying for a loan to fix your car so that you can continue to go to work, then discovering that there’s more wrong with your car than you originally thought, could leave you in a difficult situation, since you now have a loan to make repayments on, and still have no car to get to work.
The above example is not, however, a suggestion to borrow more than you need. Resist the urge to borrow for gifts, holidays, or impulse purchases. Resist the urge to round up a loan to ‘treat yourself’. Remember that borrowed money is repaid, with interest, making it an expensive way to do things. Quick cash loans are invaluable for people who are faced with expensive house repairs, car issues, unexpected medical bills or other difficulties. They can provide struggling households with a lifeline when they need to buy time to pay some bills, but they should be used carefully and sparingly.
What Are Cash Loans Available For?
Quick cash loans can be used for a variety of purposes, for example:
- Car repairs
- Replacing household appliances
- Unexpected medical expenses
- Unexpected household bills
- Important major purchases (such as a ‘back to school’ laptop)
- Funeral expenses
- Vet bills
- Utility bills
- A stopgap payment if you change jobs and go from weekly to monthly pay
- Redecorating after household flooding or other damage
The above are just a few examples of reasons that someone may need access to a quick cash loan. There are many others. Cash Smart will consider any loan application on a case-by-case basis. Many hardworking Australians have found themselves in need of short-term finance, and flexible cash loans, processed quickly, can help them out of difficult situations and give them access to the money they need, right now, to improve their situation.
Are Quick Cash Loans Good for Your Credit Score?
Any loans taken out through Cash Smart are reported to credit reference agenices, along with how well the loan accounts are serviced. Having an active loan on your credit report means that you are on record as owing money, and that you have repayments to make. This means that in the short term, other forms of borrowing may be harder to access.
However, every month that you make your repayments on time will contribute towards improving your credit score. In addition, once the loan is paid off, it will be marked as such on your credit report, and this could improve your credit score. People who have good credit scores are able to access affordable loans, zero percent credit cards, and other financial products that are not available to those who have lower credit scores that put them into the ‘high risk’ category for lends.
Credit scoring is complicated. There are many things that matter, including how long you have lived at your current address, the age of any accounts that you have, how many defaults you have, whether payments are made on time, and the amount of money you owe. If you have credit cards, then the amount of money owed today compared to the maximum amount that could be on the card is also taken into account.
Working to improve your credit score is a good idea if you are hoping to apply for affordable credit in the future. Paying off any defaults, meeting loan repayments and making sure that bills are paid on time is a wise move and will help to improve your score over time. It can take several months for changes to be reflected in your credit score.
Repaying Cash Loans
Cash loans from Cash Smart are offered over periods ranging from three months to 24 months. Repayments can be made weekly, fortnightly, or monthly.
There is an establishment fee charged on the loan amount and a monthly fee. The maximum establishment fee is 20%, and the maximum monthly fee is 4%. Actual fees will depend on the amount borrowed and the repayment schedule.
Repayments are made by direct debit, and borrowers can choose the repayment day to match the days that they receive their income. The fee for a missed payment is $30, so it is important to make repayments on time. Opting to repay the loan as quickly as you are able to is the best choice since this reduces the number of interest payments that you have to make. Be realistic about your repayment schedules, however, since missed payments can adversely affect your credit rating, and could cost more in fees.
Borrowers who are struggling to make repayments should communicate their issues as quickly as possible. It may be possible to change the repayment schedule or to reduce repayments, making the loan more manageable during difficult periods.
How Do I Apply for a Loan?
If you would like to apply for a quick cash loan, simply fill out the online application form. Make sure you have your contact details and proof of income to hand when you start filling out the form.
Most applications can be processed same day. Filling out the application takes just a few minutes, and the loan is considered based on more than just a credit score, giving those with poor credit ratings a fair chance to have their requests heard.
If the loan is approved it can be transferred into the applicant’s bank account immediately. Repayments are taken by direct debit, too, so servicing the loan is hassle-free.
Head over to the Cash Smart website to start your loan application today and apply for the loan that could give you the funds you need, when you need them.