FAQ’s About PayDay Loans

This article deals with some frequently asked questions about payday loans that will give you a brief summary about these loans and will also put your doubts and queries to rest. It is important to understand though that this is not a solution to all your problems and you must use cash advances only as a backup plan and not as a way of easy cash.Some FAQ’s1. What is a cash advance or payday loan?These loans are also known as micro loans and they are short term loans in which borrowings are available at a fixed rate and can be offered as an alternative to credit cards. You can apply for these loans from the privacy of your home and the money gets credited straight into your account. These loans can be used to make payments from day to day running costs and even avoid dishonour payments.2. How does it work?Once your loan gets approved your loan ranging from $150 to $750 (this may vary lender to lender) is electronically transferred to your checking account. All payments are online and the repayment is taken electronically from your account.3. How much can I borrow?Again this depends upon the lender but with some you can borrow $150 for your first online cash advance and up to $750 in the future depending upon the approval of your application.4. Do I require any security or collateral?No, you don’t require any security. As a part of the online application you authorise the lender to electronically transfer and deduct money at the time of repayment, much like your employer direct deposits money to your salary account.5. What do I need to do to get a payday loan?All you require is:o Proof that you have been living in the same place of residency for a minimum of 4 months
o An account open for at least four months with no dishonoured payments
o A steady job making minimum $500 a week
o The income needs to be paid directly into your account
o There are no bankruptcy, judgements or adverse remarks on your credit reports
o Proof that you are a permanent resident of Australia or New Zealand
o You are above 18 years of age6. Is my credit ranking checked?Yes, your personal credit report will be checked as it is a part of the application process and different credit rating agencies are used.7. When will I receive the funds?This differs lender to lender, but in most cases once the application is approved the funds are electronically transferred to your nominated account. For first time borrowers, these funds are available in their account over night. Return customers are issued with a Financier Debit card which allows them access to the funds immediately upon approval. This debit card acts as anEFTPOS card which can be used at all ATMs around Australia and over the counter where ever EFTPOS is available. Most Lenders do not operate over the weekends and public holidays so inquire before.8. When do I repay?Your due date to repay the amount plus fees is on your next payday. If you are paid weekly you can repay the loan over 6 weekly installments, if you are paid fortnightly you can repay the loan over 3 fortnights and if you are paid monthly you can repay over 2 months at no extra charge. Also, if you borrow less than 4 days from your next payday you will not be required to repay until the following payday.9. What is the APR?APR stands for Annual Percentage Rate which is described as the cost of the loan in annual terms. It is used by different financial service providers and companies and they document the percentage of principal paid in interest in 1 year.

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