Urgent Cash Loans

Let’s be honest, who hasn’t been faced with a situation that demands more money than they have? I mean, that’s the exact reason why loans were invented.

But, as you know, it can take a while for an ordinary loan to come through. So, what should you do if you need to come up with the money in a day or so?

If that’s the dilemma you’re facing right now, you’ll find your answer with urgent cash loans. Just as the name implies, an urgent cash loan will allow you to get your hands on a wad of cash in less than 24 hours.

So, if that’s the type of loan you need, then keep reading. We’ll cover everything you need to know about urgent cash loans from A to Z. So, let’s get down to it, shall we? 

What this article covers:

What Are Urgent Cash Loans?

In a nutshell, urgent cash loans are short-term, unsecured loans that typically don’t exceed the $2,000 mark.

Now, the best thing about urgent cash loans is that you’re pretty much guaranteed to get one once you apply. So whether you’ve got bad credit, good credit, or insufficient credit, you’ll still be able to take out a bad credit cash loan. 

urgent cash loans

But, why are urgent cash loans so easy to get?

Well, for one, urgent cash loans aren’t particularly large. So, even if you fail to pay back the loan, the lender won’t suffer too big of a setback. 

Still, the main reason lenders are okay with offering urgent cash loans is the higher-than-average fees and interest rates. 

Since the fees and charges more than make up for the risk, most cash lenders don’t even bother to run a credit check on urgent loan check applicants. 

Accordingly, urgent cash loans are a great option for people with a bad credit score or insufficient credit history.

How Fast Are Urgent Cash Loans?

As fast as a loan can possibly be. 

With regular loans, you need to wait a while for the lender to review your application and run a credit check on you. At best, you’ll be looking at a couple of days, and at worst, a few weeks. 

Thankfully, that’s not the case with fast cash loans.

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Since your loan provider doesn’t care about your credit score, your loan can be processed in as little as a few hours. 

Granted, the turnaround time can vary slightly from one lender to another. This will mostly depend on how busy they are. Nevertheless, it generally won’t take you more than a couple of days to get the money. 

Types of Urgent Cash Loans 

Typically, urgent cash loans are considered to be a type of payday loan. However, some lenders list them as personal loans. If you’re wondering what’s the difference between the two, let’s have a quick look.

Payday Loans 

Payday loans are small-sized unsecured loans that don’t require a credit check, which is pretty much the definition of an urgent cash loan.

Typically, the monthly instalment date of a payday loan is set according to the borrower’s payday, hence the name. 

The thing to keep in mind with payday loans is that they’re rarely reported to credit bureaus. So, even if you make all your payments on time and repay the loan in full, a payday loan won’t help you improve your credit score.

While this is regrettable, we can’t deny how useful payday loans are. They’re simple, fast, and extremely easy to obtain. So, if your lender informs you that your urgent cash loan is a payday loan, don’t hesitate to take it.

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Personal Loans

As opposed to payday loans, personal loans can be secured or unsecured. With a secured personal loan, you can get more money for relatively low-interest rates. Unsecured loans, however, only allow you to access small amounts.

Some urgent cash loans can be considered unsecured personal loans. The difference is that your lender will likely first perform a credit check on you. Then, according to your credit score, they may reject or approve your application. As such, the approval rate for personal loans is lower than that of payday loans. 

On the bright side, though, personal loans are regularly reported to credit bureaus. Accordingly, your credit score will start soaring if you repay the loan in full.

Eligibility Criteria for an Urgent Cash Loan 

To qualify for an urgent cash loan in Australia, you need to:

  • Be a citizen or permanent resident of Australia
  • Be at least 18 years of age
  • Have had a steady job/income for the past three months
  • Have an active bank account, email, and phone number

need money urgently

How to Apply for an Urgent Cash Loan 

Applying for an urgent cash loan is quite simple.

All you need to do is submit a few documents and fill out an online application. In this application, you’ll state how much money you need and your preferred loan terms. 

Once the lender reviews your application, you’ll receive a call from them. This is mostly to confirm your information and ensure everything’s in order. If the call goes well, the lender will send you a contract to sign, and once you do, you’ll get your money almost immediately. 

Information and Documents Needed for an Urgent Cash Loan 

Most loan applications require that you share the following:

  • A copy of your ID
  • Certain personal details, such as your email, address, and phone number
  • Employment details, if present 
  • Proof of income (payslip or income statement)
  • 90-day history of your bank transactions

need urgent money

How Much Does an Urgent Cash Loan Cost? 

Depending on how much money you borrow, the total cost of your loan will vary. 

As stated by the Australian Securities & Investments Commission (ASIC), not all small loans come with an interest rate. So, if your loan is $2,000 or less, you’ll only be required to pay an establishment fee and a monthly fee. 

The maximum a lender can charge is a 20% establishment fee and a 4% monthly fee. So, if you’ve borrowed $1,000 to be repaid in two months, you’ll end up paying the following:

  • Establishment fee: $200
  • Monthly fee: $80 
  • Total: $1,280

Occasionally, you may find a lender willing to loan you more than $2,000. 

For such a loan, you’ll be required to pay interest and, at most times, an establishment fee. Typically, the interest rate for a loan less than $5,000 will be around 5.99% per annum, and the establishment fee will be somewhere from $100 to $700.

Note: If you’ve got bad credit, expect your interest rate to be slightly higher than usual. The same may also occur if you’re on Centrelink benefits. 

i need money urgent

Should You Choose a Long or Short Term Loan?

This will depend on your financial situation. 

Generally, short-term loans come with higher monthly payments and less overall interest. So, if you make enough money to comfortably cover the monthly payment, a short-term loan will be an excellent choice for you. 

However, if you know that you won’t be able to repay the loan fast, then choose a long-term loan that suits your financial situation. You don’t want to fall behind on your payments. Not only will this affect your credit score, but you may also incur late payment fees and other penalties. 

So, be sensible when choosing your loan terms. The cumulative interest won’t be as bad as the penalties and late fees. 

Note: Almost all urgent cash loans need to be repaid before 52 weeks.

Advantages of an Urgent Cash Loan

Urgent cash loans offer many benefits not found with other loans. Some of these benefits include:

  • Easy application process
  • Minimal requirements
  • Bad credit clients can apply 
  • You get the money quickly 
  • No hidden fees and charges

loans urgent

Disadvantages of an Urgent Cash Loan

While it’s nothing too major, urgent cash loans do have a few disadvantages, which include:

  • The loans are for small amounts only
  • You’ll damage your credit score if you fail to repay the loan 
  • They won’t improve your credit score even if you manage to repay the loan

Are There Alternatives to Urgent Cash Loans?

If you feel that getting an urgent cash loan isn’t the best idea for you, here are a few other ways you can get your hand on some money quickly.

No-Interest Loan Scheme 

The No-Interest Loan Scheme, or NILS for short, is a service offered for low-income Australians in need of money. 

With the NILS, you can borrow up to $1,500 without undergoing any credit check. Best of all, this loan doesn’t come with any fees or interest rates. 

You simply pay back the amount you borrowed over 12-18 months, no more, no less. Once the loan is repaid, the money will be freed up for someone else to take. 

loan urgently

As great as the NILS sounds, it comes with its own drawbacks. For instance, a NILS loan isn’t easy to acquire. First off, you need to fulfil the following criteria:

  • Applicant must have been living in the same address for at least three months
  • Applicant must be able and willing to repay the loan
  • Applicant must either have a Health Care Card, a Pensioner Concession Card, or make less than $45,000 after tax deductions

Secondly, the loan money needs to be used for essential goods and services only. This includes things like medical/dental services, household and educational items, electrical goods, car repairs, etc. If you plan on using the money for something like a holiday or debt consolidation, you won’t qualify for the loan.

Even if you meet all the criteria, you still need to go and meet with your local NILS provider to get the money. This meeting will take time to arrange, and it’ll take your provider a few days before they can give you the loan. 

While this process isn’t too time-consuming, it can be a bit lengthy for some. So, if you don’t have the luxury of waiting a few days for the money, a NILS loan may not be right for you. 

Centrelink Advance Payment

The Human Services Department allows Centrelink recipients to get emergency cash loans, known as advance payments. 

To be eligible, all you need is to have been receiving any of the following payments for at least three months:

  • Disability support pension 
  • Age pension 
  • Carer payment 
  • Parenting payment
  • Jobseeker payment 
  • Youth allowance for job seekers 
  • Student youth allowance
  • Widow allowance 
  • Mobility allowance 
  • Farm household allowance 
  • Austudy 
  • Abstudy Living Allowance
  • Family Tax Benefit Part A

i need urgent loanIf you check the box, you’ll be able to get a sum of money which will then be automatically deducted from your future Centrelink payments. 

Again, this type of loan comes with no fees, interest rates, or credit checks. However, its major flaw is that it cuts your income for the coming weeks/months. This may leave you in a hard spot, not being able to pay for your essentials like groceries, rent, utilities, etc. 

What Can You Use the Loan Money for?

You can use your urgent cash loan however you want. 

Commonly, though, most people take out urgent cash loans in case of an unexpected expense, such as:

  • Medical or dental bills 
  • Car repairs
  • Rent money 
  • Utility bills
  • Home improvements
  • Expensive purchases such as laptops, phones, etc.

Definitely. 

Though not all loan providers approve clients with a Centrelink income, many still do. 

Whether you’re receiving a disability support pension, age pension, job seeker allowance, or some other government benefit, you’ll be able to find a lender willing to lend you the money.

Still, don’t get too discouraged if it takes you a few tries to find your loan provider. Some will reject you if they discover that most or all of your income comes from Centrelink benefits. That’s because they believe you’ll have trouble with the loan payments in the future. 

However, others will thoroughly consider your application, assessing your income and recent financial habits. If you’re up to par, the lender won’t hesitate to give you the money. 

i need money urgently

FAQs

Do Urgent Cash Loans Require a Credit Check?

No. Urgent cash loans are typically given out without a credit check. Some lenders will run a credit check on first-time clients, though.

Can You Get the Loan Money in Less Than 24 Hours?

Yes, but that’s not always possible. It’ll depend on how quickly the lender will check and accept your application. If you send in your application early enough in the day and the lender isn’t too busy, you should get a response in a matter of hours. After the lender starts the bank transfer, the money should be available to you after 60 minutes or so. 

When Can You Apply for an Urgent Cash Loan?

Any time you want; weekdays and weekends are all fair game. Just keep in mind that if you submit your application after business hours, the soonest you’ll get a response is the next business day. 

need loan urgently

How Do You Know If a Particular Lender Accepts Centrelink Customers?

Typically, lenders will state their eligibility criteria on their pages. If they don’t accept Centrelink customers, they’ll clearly say so. If you don’t find any mention of the subject, then don’t hesitate to send your query in your application. 

Can Unemployed Individuals Apply for an Urgent Cash Loan?

If you’re unemployed but have a source of income, such as Centrelink, you can apply for an urgent cash loan with no issue. However, if you don’t have any source of income, you’ll be hard-pressed to find someone willing to lend you money.

Can Self-Employed Individuals Get an Urgent Cash Loan?

Yes, though they’ll need to show their loan providers proof of income. That way, the lenders can determine whether the client makes enough to cover the loan payments.

Conclusion 

Urgent cash loans are an absolute godsend if you need cash fast!

Since lenders don’t need to run a credit check on you, you’ll usually be able to get you money before the day is out. 

But remember that your loan won’t exceed the $2,000 mark (though some lenders may stretch it to $5,000). 

So, if you need more than that, discuss your options with your loan provider, and they may be able to offer you a different solution that better suits your needs.

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