Payday Loans Bad Credit
If you have bad credit and are in need of some cash, then a payday loan may be one of your options. A short term loan comes with high fees and the potential to trap you in a cycle of debt, so you need to consider whether a loan like this is right for you. If you do have bad credit you may still be able to get a payday or short term loan.
By law every loan provider must carry out reasonable enquiries into your ability to pay back a loan. This usually includes a credit check as well as a number of other criteria such as your income and other expenses. This type of information is gathered from your payslips and bank statements. A lender may request more information from you in order to make a decision.
Whilst short term lenders perform credit checks it is common that they do not place as much emphasis on your credit history as a bank would. Because a payday loan is a short term loan, (also referred to as a cash advance), it is expected to be paid back within a shorter period - not years. If a lender feels that your income and liabilities mean that you can afford to repay a short term loan within a specified period, then you may be approved even if you have bad credit from previous defaults.
Can I Get A Loan With Bad Credit?
It depends how bad, but again, if you have been refused by a bank, this doesn't mean that you will be refused by a payday loan company. As described above they can be willing to lend money to people with bad credit. Be completely honest with your application - responsible lending guidelines are in place to protect you so that you are only provided with credit that you can afford to repay. And as the lender does their due diligence investigations they will invariably ask for supporting evidence of all your claims of income and expenses.
Don't assume payday lenders just automatically lend to everyone who wants money - they don't. They are required by law to lend responsibly.
Can I Get A Payday Loan On Centrelink?
Most lenders will not lend money to people who have Centrelink as their primary income source. For those lenders who do lend to those on Centrelink, there are some very strict requirements on how much can be loaned and how much the repayments are compared with the Centrelink payments.
Some lenders won't lend to people who are unemployed and only get Centrelink benefits, but if you are employed and also on Centrelink, some lenders will count this Centrelink income towards your total income.
This also changes according to what Centrelink benefit you are receiving. Secure and permanent payments are usually accepted, such as a pension or disability payment, but again this depends on the lender.
To see more information about some of the short term lending products in the market you can see the Payday Loans Page.