Are There Really Guaranteed Payday Loans No Matter What in Australia?
One of the most attractive financial terms that has recently become popular is that of getting guaranteed payday loans no matter what in Australia. However, while many people would love for this to be true, it technically isn't.
There are platforms that offer access to payday loans, allowing you to borrow money to finance emergencies or other needs. However, there is no guarantee that your payday loan application will be approved.
Like other businesses, payday lenders need to perform their due diligence. This means checking borrowers' information to ensure that they are credible and creditworthy. So, if anyone offers a guaranteed payday loan no matter what, it just might be a scam.
Watch Out for Lenders That Claim to Offer Guaranteed Payday Loans No Matter What in Australia
The payday lending industry is highly structured. Lenders need to perform credit checks to ascertain borrowers' creditworthiness. To wit, you might want to be wary of any lender that promises to give you a payday loan no matter what. It could be a sign that they are not legitimate.
Other warning signs you might want to look out for include:
- No licence from the ASIC
- A request to make upfront payments
- Approval guarantees
- Suspiciously low interest rates
- Generic Email addresses and contact information
Why a Payday Loan Application Can Be Rejected
When you want to get a payday loan, you need to apply for one. However, payday loan applications can get rejected for any of the following reasons:
- Not meeting the criteria: Most payday lenders have minimum criteria that need to be met. If you're unable to meet them, then you might not get approved for a loan.
- Having too many payday loans: If a lender finds that you have several payday loans currently running, it might be a signal that you want to use the funds gotten from this one to pay the others.
- Unemployment: While there are lenders that consider unemployed applicants, a person with no stable source of income can be seen as a risky borrower that will have issues with keeping up with loan payments.
- Cash-paid income: Lenders need to be able to verify your repayment capability. This includes checking your bank statements. So, if your job pays you in cash, you might have a hard time with approval.
- Gambling history: If a lender finds that you've been making frequent payments to gambling sites, they may consider you a risky borrower and reject your application.
Bad Credit? Don't Want Credit Checks? No Problem! WeLoans Can Help You Out!
WeLoans is one of the best online platforms available for anyone looking to get access to payday loans. Our lenders consider people with bad credit and only conduct soft credit checks, without affecting your credit score.
Thanks to our large network of lenders, customers can compare offers from multiple lenders. You can choose the terms that work best for you, and get money deposited into your account as quickly as possible.
How to Apply for a Payday Loan on WeLoans?
Ready to get access to your loan? Here's how it's done:
- Complete the Form: Fill out the application form with your basic personal and financial info.
- Get Offers: WeLoans will share your application with its network of lenders. After reviewing the application, they will send you loan offers in minutes.
- Sign Your Agreement: Select the loan offer that seems best for you and finalise the terms with the lender.
- Get The Cash: Now that your loan is approved, you should get the funds deposited into your account in 24 hours.
Documents Needed For a Payday Loan Application
To get your loan application approved, you will need to share several documents. These include:
- Means of identification: A lender will need to check your international passport, drivers' licence, or some other means of government-issued photo identification. You also need to share proof of address - a phone bill or some other utility check.
- Proof of residency and income: Your lender may need to confirm your residency status with your Medicare card. As for income, payslips of the last few months should do.
- Bank statements: You will also need to provide your lender with read-only access to your bank statements.
Cost of Payday Loans
Generally, payday loans tend to have several fees associated with them. They include:
- Establishment fees: These are usually capped at 20% of the principal amount.
- Interest payments: This is the percentage you are charged for the loan itself
- Monthly account fees: Payday loans accrue monthly fees, which are capped at 4% of the principal.
- Late payment fees: These will be charged if you fail to make the payment on time and don't inform the lender in advance.
- Arrears: If your account goes into arrears, a fee will apply as well.
- Statement fees: Some lenders can also charge for issuing paper statements.
How Should You Compare Payday Loans?
After you submit your application on WeLoans, you'll get offers from different lenders. This means that you need to compare the offers to get the best deal. Here are a few pointers to help you with that:
Loan term: The first thing you want to check is the loan term. Payday lenders have terms that range from 16 days to a year, and you can repay your loan in full before the agreed date as well. It's best to borrow from a lender that does not charge a fee for early repayment.
Interest: Next, compare the establishment fee and monthly fee. Note that payday lenders in Australia can't charge APRs.
Other Fees: You should also look into other applicable fees - from collections to default fees and more. Understand the ramifications of each fee and decide if you're comfortable paying it in the long run.