Cash Loans Australia: Compare and Apply

If you need a small amount of cash quickly, a short term cash loan (also called payday loans by some people) may be an option. Whether you're covering bills, or an unexpected shortfall of cash, a small cash loan may be able to get you the funds to make up the difference. Compare short term cash loans in Australia from 6 providers. Remember when comparing these small loans on MoneyBuddy that while we have many listed we don't have every product or provider and you may not be able to compare some loan features.

The list below is not to be taken as a recommendation or an endorsement of any product or provider. We do not have any details of your personal circumstances and therefore are unable to make a recommendation as to which product might be most suitable for you. The information is presented to you so that you may make a decision based on your personal circumstances. The information in the list is presented randomly.

All product information comes from the product provider or an affiliate and to the best of our knowledge is correct at time of publishing. MoneyBuddy endeavours to keep product information up to date however we cannot be responsible for changes made to this information by product providers and/or inaccurate information obtained from a product provider. We recommend that you check the accuracy of all information provided on this website with the product provider. MoneyBuddy earns a referral fee from redirecting website users to a product provider's website. Further details are provided in relation to specific product information. Website users have no obligation to apply for a product or service that they may be referred to by this website.

Warning: These comparison rates are true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

Short Term Cash Loans in Australia Explained

There a number of ways to borrow money and one of those is a short term cash loan. Many personal loans are repaid over years, whereas a short term loan is typically repaid over months. Of course these types of lending products vary by lender and you need to check the details of any cash loan you are considering.

This type of short term loan is also referred to as a payday loan, payday advance or cash advance, but these terms are now being used less by lenders and consumers. The term payday loan carries a somewhat negative connotation from a time in Australia when there was very little regulation of small amount loans and loan periods were sometimes just a week or two - until the customer's next payday. In Australia it is now illegal to offer a loan of less than 16 days and across the industry many lenders have lengthened the loan repayment period to several months.

Short term lending is now heavily regulated in Australia and the term SACC (Small Amount Credit Contract) is used to describe loans that are $2,000 or less and are to be repaid between 16 days and 12 months. There are caps in regards to the maximum allowable establishment fees and monthly fees for SACC loans.

Like with any loan, if you miss repayments when borrowing small amounts of money over short time periods there can be expensive fees. So before taking out any loan it is advisable to carefully check the repayment schedule and be confident that you can meet all your financial obligations.

Short Term Loans and Credit Checks

Every lender in Australia has a commitment to "Responsible Lending". Many lenders carry out credit checks, but other short term lenders don't. The lenders that don't do credit checks focus more on your employment, income, expenses, other loans and cash flow than on your credit history. With increases in technology there are other data points and complex algorithms that calculate your ability to repay a loan and your propensity to do so.

If you have a poor credit history then credit may be unavailable to you from many sources. If you are concerned about a credit check being performed for a small loan, then you may want to ask your lender whether they conduct credit checks before applying.

There has been significant movement in recent years in Australia to help consumers understand more about the information on their credit file and have easier access to it. A quick Google search reveals a number of options to request your credit file, learn more about it and even access a credit score. The way your credit score is calculated will vary between credit bureaus.

Lenders are expecting you to pay the loan by the end of the period. If you default on your loan repayments and don't repay the loan, then your lender may report this information to a credit bureau. This type of default can stay on your credit file for 5 years and for up to 7 years for serious credit infringments.

Benefits of Short Term Cash Loans

1) Speed

When compared to other types of loans may take weeks to process, a short term cash loan can be relatively quick to process. Many short term lenders  give same day approvals and transfer the money into your bank account on the same day as approval. Depending on the timing of transfers between banks this could reach your bank account the same day or it may take several days.

2) Less Paperwork

Many small lenders have an impressive online presence. They have become very good at providing a fast, online experience that requires minimal paperwork. Some of the processes that can be automated online are ID verification, bank statement retrieval and verification, direct debit requests and digital contract signing.

Rather than you having to spend time finding paperwork and scanning and emailing or faxing it, you may be able to remove a lot of friction from the process and complete it all online.

3) Anywhere in Australia

You don't need to go into a local branch to apply. This means a greater range of choice for you as you research cash loan providers across Australia. Communciation and support with short term, online lenders is typically done via email or phone, so no face-to-face presence is required.

4) No Long Term Commitment

Because short term loans can be paid back within months, you can maintain your flexibility rather than having to commit to longer term credit arrangements. A personal loan period is typically 2 to 7 years and for a much larger sum of money. Other credit products like credit cards can quickly rack up significant amounts of debt if you're not good at managing your money. This can lock a consumer into repayments for years.

Cash loans fill the gap when you have a money shortfall and need some assistance. Hundreds of thousands of Australians don't have enough money saved for a rainy day and so a short term, flexible option when required without the long term commitment.

5) Unsecured Cash Loans

Unlike a personal loan which may require security over an object like a car or a home loan which is secured against your house, a short term cash loan is unsecured.

Alternatives To Short Term Cash Loans

1) Ask Your Employer For An Advance

You might be surprised by just how willing employers are to help you out in times of need. Many will have experienced giving out advances previously and have processes set up for employees who need such help.

It doesn't hurt to ask, and you could save yourself a lot of fees and charges.

2) Ask Creditors To Extend A Due Date

Most creditors have processes set up to help you pay them back. After all, they want their money and if that means extending your due date or helping you set up a payment plan, most will be more than happy to do so, as it means they will be getting paid! It's easy to ask, just call them up and see what they can do for you.

3) Seek Out Community Organisations & Centrelink

Many community organisations are set up to help people in distress or crisis and help you get on top of your finances by offering no interest loans, vouchers, counseling or even calling up creditors for you. It is their priority to help you, that's why these organisations exist. They also deal with this every day, so don't be embarrased or shy, if you need help, just ask.

Centrelink also has help available, even if you are not already receiving any regular payments. Crisis type payments are available.

If you are receiving a regular payment from Centrelink, you may be entitled receive an advance on your payment, which will be in your bank account within a couple of days. You then get a small amount deducted from any future payments until that amount is paid back. You can do this online, over the phone, or at any Centrelink agency.

4) Sell Unwanted Goods

Have a look around your house and see if there is anything you don't need or don't use anymore. You could look to sell it on websites like eBay or Gumtree or take unwanted goods to a local pawn broker. Be prepared for a low price though, pawn shops are known for offering low valuations as it is how they make their money.

5) Personal Loans Or Credit Cards

Although personal loans and credit card debt may be unattractive options, they may be alternatives you have available to you.

The downside with personal loans is that they can take a while for a bank to approve and if you are in need of cash quickly, time may not be on your side. The same applies to credit cards, if you don't already have one, the application will usually take at least a few days to be processed and then a further few days to be sent out.

If you still want to look at these options then visit MoneyBuddy's pages where you can compare personal loans or compare credit cards.

How To Choose A Short Term Loan Provider?

Referrals from family and friends are a good source of information in relation to companies they have dealt with. Ask them a few questions about the lender's getting started process, customer service and overall happiness with them.

Online reviews are also a useful source of getting feedback from a wide range of customers. Just check to see if the reviews are tied to a commercial incentive (e.g a paid partner or reviewer) which isn't necessarily a negative thing as many free websites that require sponsorship have useful information. Just take it into consideration with your research.

It's important to compare pricing and fees. Many short term loan providers have very similar fees because the government mandates the maximum that can be charged. But look around and see if you can find a product with cheaper fees.

There are benefits that these types of loans have over others, such as the speed of delivery. Most payday loan lenders in Australia claim to offer quick approval and quick delivery of funds.

If you need the money in a hurry then compare the timing and speed that is promoted by the various lenders. Whilst most short term lenders may claim a quick turnaround, you should remember that they will take some time in order to comply with their legal obligations. They are unable to provide "instant" approvals or delivery of funds to you.

Good luck in choosing the best option for you to suit your short term financial needs!

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