What Kinds of 4K Loans Can You Get?
$4,000 loans come in different forms. Here are the 2 most common types:
Short term loans
A short-term loan is normally under $4000. But recently, lenders are meeting an increase in demand for larger loans as basic expenses continue to grow more costly.
Short-term loans up to $4000 are under the ASIC cap. That means, as a borrower, you won't be charged more than $400 in establishment fees. The p.a. rate is also capped at 48%.
Personal loans offer relatively high amounts, up to $30,000. They are typically taken for one to seven years.
You have the choice between secured and unsecured personal loans too. Secured loans require you to put up collateral, while unsecured loans do not. Providing collateral may help you qualify for 4K loans more easily or get better rates.
What Do You Need to Obtain a 4000 Loan?
You can borrow 4K if you meet just a few requirements:
- A copy of your ID that shows you're an Australian citizen or permanent resident over the age of 18
- Contact details (Phone, email, mailing address)
- Internet banking history for the last 90 days
- Proof of income (salary, other payments, Centrelink, etc.)
Sometimes, you can or must provide employment details, including the name and address of your employer.
What Can You Do to Improve Your Chances of Getting Approved for a 4K Loan?
While 4K loan requirements vary depending on the lender, you can increase your chances of approval by doing the following:
- Check the eligibility criteria before applying. Some lenders accept Centrelink as income while others do not.
- Check your credit file and correct any mistakes. Errors on your credit file can negatively affect your approval.
- If possible, provide more thorough proof of a good income and stable employment.
- Don't apply to too many lenders! Multiple applications can put a dent in your credit score.
Can You Get a 4K Loan with No Credit Check?
Unfortunately, $4000 loans with no credit check do not exist. The term "no credit check loans" is used to attract borrowers, especially those with bad credit or no credit history. Responsible lenders in Australia must conduct credit checks, as a credit check is mandatory under relevant regulations.
However, many online lenders consider applicants with bad credit and only conduct soft credit checks that have no effect on your credit score. You need to show your ability to repay and provide contact information.
Tips for Comparing $4000 Loans
There are a few key indicators to look at when comparing 4K loans:
- Interest rates
- Startup fees and other charges
- Repayment options; weekly vs monthly
- Early repayment penalties
- Redrawing funds
The interest rates are normally the most significant cost of a loan. But you need to consider all the fees, such as establishment and monthly fees, as some of them can be high. Also, be aware of early repayment fees, as some lenders do not want you to pay them back at once and would prefer you to just follow the original repayment schedule to the end.
The best way to compare loans, however, is to take advantage of a professional loan comparison platform.
WeLoans is a loan website that works with many reputable lenders. We send your application to multiple lenders for you, so you can easily compare the different options you have and get the 4K loan with the most favourable conditions.
You don't need to worry about any privacy issues, as we use state-of-the-art encryption technologies to protect your information. You can even get funded the same day if you apply in the morning and everything goes smoothly!
How Do You Calculate the Repayment on a $4000 Personal Loan?
The calculation requires you to factor in 2 variables:
- Interest rate
- Loan term
Higher rates always mean higher costs. But the loan term also has an effect. Longer periods mean you pay more overall, but each repayment is lower. Short periods mean you pay more per repayment, but the total amount repaid is lower.
For example, with an interest rate of 12% on a 4K loan and a flat monthly fee of $10, this is how different your loan could look:
1-year term = $366 per month, $4,385 in total
2-year term = $199 per month, $4,760 in total
3-year term = $143 per month, $5,143 in total
How Can You Pay Back a 4K Loan?
Most lenders offer several options for borrowers to choose from. Available options include:
- Online funds transfers
- Australia post
- Direct debits to your bank account
- Direct debits to your salary