FinanceComparison.com.au

How to get Approved for a Cash Loan

Payday Loans > Payday Loan Articles > Article: How to get Approved for a Cash Loan

A payday loan is a short-term loan designed to help borrowers meet an urgent financial need by providing instant access to cash. Also known as payday cash advances, cash advance loans, or deferred deposit cheque loans, these short-term loans are growing in popularity among borrowers who need instant access to cash but lack the credit to obtain traditional financing.
Getting approved for a payday cash loan is simple. There are only four basic criteria required to be approved for a payday loan. To qualify for a payday loan, you must:

  • Be an Australian citizen
  • Be at least 18 years of age
  • Have verifiable, regular employment (and paycheck stubs to present)
  • Have had a valid bank account for a minimum of three months

The third criteria is the most important. Borrowers must have proof that they earn a regular income. Rather than conducting a credit check to determine eligibility, borrowers look at the pay stubs you provide to assess your ability to pay back the debt. (Note: If you find a lender that requests a copy of your credit file or credit rating, walk away. The majority of payday lenders do not require credit checks, and those that do are often fishing for personal information that they can use for other purposes.)
Payday lenders secure their loans by obtaining a post-dated cheque from the borrower. The lender will hold the post-dated cheque until the borrower's payday, at which point he will deposit the cheque to pay off the loan.

How to Apply

Many payday lenders have fax-free applications that borrowers can complete online in a matter of minutes. You can also complete a payday loan application at the lender's store or office. Once the loan application is completed, you must wait for approval. Approval can be granted in a matter of hours, and generally takes no longer than one day, although speed will vary from lender to lender. Some payday lenders will even give you same-day access to the money, provided you complete the application early in the day.
Once the lender has approved your application, the funds are deposited in your bank account or made available at the payday lender's office. Once you've received the money, you can then use the payday loan funds as you see fit. The loan is repaid when the lender cashes your post-dated cheque, after your next payday. If you have to extend the loan to repay the debt at a later date, you will most likely be assessed higher finance charges and additional fees.

There are many payday lenders out there, and not all of them maintain the same standards of excellence or competitive rates. Shopping around to find a quality payday lender is the best way to ensure that you get the best deal. The Internet makes it easy to compare payday loan products and find the lender that offers the best interest rate and terms. By doing your homework to evaluate payday lenders, you can easily find the loan that best fits your needs and avoid doing business with disreputable company.

Things to Consider When Evaluating Payday Lenders

1. Interest Rate
While most payday lenders charge higher interest rates than traditional lenders, you can still shop around to compare different rates. Compare both the initial interest rate and the interest charged for a loan extension in order to get the best deal.

2. Terms and Conditions
Obviously, the interest rate on a payday loan is important; however, you should also examine every lenders terms and agreements. Does the lender charge a higher interest rate or fees for extending the loan term? Many payday lenders will assess steep charges for loan extensions, so you should understand these terms before you sign. Even if you intend to repay the loan within the original timeframe, you should understand the extra costs associated with extending the loan. If a payday lender is hesitant to share details about their fee rates or other costs, walk away.

3. Speed
If you have a pressing financial emergency, you'll want to focus your search on lenders who can get you the funds fast. However, payday lenders who deliver the money quickly often charge higher interest rates. If you can wait a few days to receive the cash, you would be wise to shop around for better interest rates and loan terms.
Remember: payday loans are not appropriate for an extended financial crisis and should not be used as a tool to live beyond your means. Payday loans should not be confused with other traditional loan products. Payday loans are intended to be paid back quickly and should not be used as a solution to a long-term financial problem because they carry high rates of interest.

What to do next

Finance Comparison lists a number of highly competitive payday loans that you can apply for online. Simply compare rates, terms and apply online.

 

Return to Top

 

Credit Cards

Credit Cards

Compare credit cards to find low interest rates, low fees and great rewards on offer in Australia.

Personal Loans

Personal Loans

Compare a range of personal loans. Compare rates, terms, lenders and save!

Bank Accounts

Bank Accounts

Banks are offering great deals on term deposits and high interest online savings account, which one will give you a better deal?

Home Loans

Home Loans

We compare a range of home loans with low rates and great features. Get a free home loan quote today.