These loans differ from Pay Day Loans. These credit limits are from $500 to $5000 and are assess on an individuals situation and income. They have a stated a interest rate (in the fine print) and are open to people even if they have government income (Centre Link) or if they are a discharged bankrupt,
To apply you need is:
- Your internet banking details (if you want a super-fast decision) or bank statements that cover at least the past 90 days. Most companies want the details electronically so they can be analysed quickly If you supply them manually, it will delay how quickly you can get an answer.
- Two types of identification (choose from your driver licence, Medicare card or passport number)
- Your BSB and bank account number (so we know where to deposit your money)
- Plus all the usual stuff like your name, date of birth, address and employment information and details of your other loans and expenses.
- From time to time the assessment needs a few extra checks. These checks help us comply with a commitment to being a responsible lender and we will only do them if they are needed to get your application fully assessed. Sometimes this involves talking to employers, who will want you to let you, the employee, know so you agree it is agreed to share information on you.
The lenders are responsible lender, so yes, we perform a credit check. But they take all of your information into account when making a decision, so credit history is considered against over all risk.
The lenders consider lots of information into account when making a decision. Not everyone is accepted. The lenders won't provide you the exact reasons that your application resulted in a decline. However, if your situation changes, you can apply again to see if you qualify.
A credit limit is the maximum level of credit available to you under a contract. This amount is based on our assessment of your situation and income. We will either approve your request or offer a credit limit that is right for you.
You don’t always have immediate access to your available credit. This may be because:
- The amount you have requested is less than the Minimum Redraw Request Amount (this is the lower of $500 or 25% of your credit limit).
- You have made a repayment recently and the funds have not yet cleared.
- There has been a material change in your financial circumstances.
- You may be experiencing financial hardship.
The cost are either in fees or if there are no fees a larger interest rate that will be quoted as a APR means Annual Percentage Rate. One company has a new loans effective rate of 47.8%
You will have a minimum repayment amount is determined by your approved credit limit. You are usually notified of your minimum repayment via SMS and by emailing your statement to you 3 days before your payment is due to be debited from your nominated account. This way if you don't have the money ready it's your fault.
Repayment are by set-up automatic repayments either weekly, fortnightly or monthly by direct debit that coincide with your pay cycle. You can also make additional repayments whenever you want to pay off your balance faster.
Also you get a statement that show repayments are due on the date shown on your statement. Your statement will be sent according to your Statement Cycle shown in your Loan Schedule. This date is usually the day you receive your pay.
If you don't have the funds available and the repayment becomes too overdue there will be a Direct Debit Reversal Fee of $10 . Also the company may place a default on your credit file. This could remain there for up to 5 years. As an incentive to make sure you make your repayments on time.
Most major banks will put the funds into your account in under an hour from when we transfer the cash. From time to time it can take a little more (up to 3 hours) but we find it is safest to wait at least 2 hours and check again before contacting us.