Life has a way of throwing snags your way especially those pecuniary plights.
It could be:
- unanticipated medical bills
- car troubles
- business hitches
- or house facelift.
Or perhaps you are a visitor & wish to move to a new neighborhood within Australia. Either way, you need some quick spare cash.
Why Unemployed Australians Need Quick Cash Loans
You may have your budget well planned in fact with a little amount of cash set aside for such emergencies, but when such fiscal facers come your way, you still need some financial aid.
It gets worse when you are unemployed since quick easy loans for unemployed are hard-to-reach.
You find yourself troubled with no place to turn to since hardly any banks are willing to help. Worry not, below is a quick guide on how to access cash loans for unemployed in Australia. After all, abrupt expenses don’t exempt the unemployed, do they?
With these little loans for unemployed, you can work out that inconvenience and get back on your feet. Such loans for unemployed Australians give additional succor be it to a student, parent or an entrepreneur to help buoy you out of a crisis.
Pull up a chair and hone in on this train as we show you how to get around accessing unemployed cash loans.
Fast cash loans for unemployed
It may seem general knowledge but what are fast cash loans for Australians who are on the wallaby track? Fundamentally, loans for the unemployed are emergency little cash aids that jobless Australians can apply for should a financial problem come their way.
You may find yourself needing an instant cash loan. Much as these loans are labeled ‘instant’, don’t be fooled to think they are instant. They are not. In reality, these loans happen to be processed so quickly hence the tag.
Having an unpleasant credit history may affect your chances of securing an online loan or sometimes you just don’t want your credit checked. No need to worry.
You can access no credit check loans instead. For these loans, your credit history is not considered while approving your loan application. However, not all lenders offer this alternative.
Financially liable Australians (students mostly) are eligible for these loans. It’s important to note that these loans are not limited to students. Jobless Australians who receive fixed unemployed benefits could also try these loans to boost their finances.
If you are an Australian receiving Centrelink income, you may be also eligible for an online cash loan. This is because most financial institutions in this country consider Centrelink benefits as a regular income source. Lenders and banks providing these loans have an online application, review and approval procedure. Additionally, the money will be sent to you online. Thank God you don’t have to make long queues at the bank to get served or fill out papers.
The major pro of online cash loans is that online application is simple and the cash is availed quickly. Nonetheless, these loans may have higher rates.
If you are considering no credit check loans, there are various options available. These options come with different features, payment plans, availability, interest rates, and risks.
As a result, it is necessary to deliberate upon the options before making a final decision. Do not panic, however, as we break down some of the options commonly available for unemployment loans here.
The two common no credit check cash loans for the unemployed in Australia are;
- Payday loans
- Personal loans
1. Payday loans are usually ad interim fleeting loans repaid within a year. Most are limited to a sum not exceeding $2000. They can be accessed without your credit history check. Withal, this option has a downside. Not only are the interest charges high but also, they have a short fixed period to repay. Not to mention the inflexibility of terms for this type of loan. Failure to settle the loan before the deadline has consequences including but not limited to additional extra charges.
2. Personal loans, on the other hand, are those unemployed cash loans availed to help a person in need get around a financial hitch. They come with less severe approval criteria. Unlike payday that has draconian terms, personal loans have more feasible terms and acceptable rates. The risk correlating to personal loans is significantly smaller compared to that of payday loans ergo personal loans are preferred. They include lifestyle or car loans and have different interest and comparison rates.
Should you have a good credit history or don’t mind the lender going through your history, you can apply for online loans.
Credit Score May Determine Eligibility
As a way of determining your eligibility, the lender may be inclined to use your credit score.
A credit score is a statistical figure realized from the evaluation of your credit file. It tells about your borrowing behavior.
It is advisable to find out your score since it is calculated from your credit report which contains:
- Personal information like age
- Credit amount borrowed
- Unpaid/delayed loan payments
- Bankruptcy related information
Experian and Equifax are Australia’s common credit reporting bureaus and their credit evaluation is as tabulated below.
|CREDIT CATEGORY||EXPERIAN VALUATION||EQUIFAX VALUATION|
|Weak||0 – 549||0 – 509|
|Fair||550 – 624||510 – 621|
|Good||625 – 699||622 – 725|
|Better||700 – 799||726 – 823|
|Excellent||800 – 1000||833 – 1200|
A credit score provides insight into your available loan options. The higher the score, the easier it is to secure a loan. For instance, a 550 is an average score (Equifax system) and implies you have a 1 out of 12 possibility of default lodge in a year.
Perquisites of taking a loan for unemployed are:
- The loan can be used to cover different costs depending on your needs especially the unexpected emergencies that cannot wait.
- You set your terms of repayment by picking the loan option that best suits you.
- These loans can help you patch up your budget so that your month or year projects run smoothly.
General application procedure
With the right loan in mind, here is the application procedure although it may slightly vary depending on your lender.
To qualify you require to:
- Be 18 years or older
- Be an Australian citizen or permanent resident. You can still access a loan if you are a Non-resident although you’ll need a visa and loan options will be limited to repayment time before your Visa expires. Your overseas credit history won’t be factored during approval.
- Have been receiving a regular income to your bank account for the past 3 months (Centrelink benefits count)
- Be reachable i.e. have an active email address and mobile number
The application process is simple & quick.
Head over to the website of your lender of choice that offers the type of loan you want. Scroll to the top (if the top of the page is not being displayed upon loading) to find the loan calculator. Enter the amount you intend to borrow as well as your suitable repayment terms. Click on the ‘Apply Now’ panel.
You’ll then be provided with an application form to fill in details like your personal information, contact information, bank statement, and MyGov account details if you receive Centrelink Income.
Some lenders may require your banking credentials to acquire a bank statement in order to process and approve your loan.
Beware of fraudulent money lenders.
After you are done filling in the details, submit the form.
Now, wait for your application to be processed and approved. For clarification or further communication, the lender will reach out to you through the email address or mobile number.
If successful, your lender will get in touch and a digital loan contract will be emailed to you. Go through the contract to ascertain everything and if satisfied, sign the contract and forward it to your lender.
The lender will then transfer the funds to you but keep in mind, access to the funds is dependent on inter-bank transfer times.
3 Types of Quick Loans in Australia
There are 3 broad groups of quick loans for unemployed that you can apply for in Australia depending majorly on the sum you want.
- Small personal loans usually capped at $2000. The payment period is usually within a year. They don’t require collateral.
- Medium personal loans stretch between $2001 to $5000. The payment period for this loan is extended to 2 years.
- Large personal loans entail sums exceeding $5000. They have a repayment period similar to medium loans.
If not successful you can try getting a co-sign loan, use home equity or try peer to peer lending.
Quick & Simple Repayment
Most lenders prefer to set up payment lining up with your income calendar. They will set up a direct debit into your account such that funds will automatically be deducted until your loan is fully settled.
They will also send a repayment alert before and on the payday to keep you informed.