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Payday Loans Online: Are They Safe?

Payday Loans Online: Are They Safe?

On the hunt for payday loans online? 

Payday loans online may be a solution for Aussies looking for a quick fix to their financial troubles. If you’re receiving Centrelink or have poor credit, you might be thinking that payday loans are your only option. But this begs the question – are they safe? Jacaranda Finance is here to dig a little deeper into the world of payday loans. So keep reading to find out if they’re a good option for you and what other alternatives may be available.

What are payday loans online? 

A payday loan, also referred to as a cash advance loan, is an extremely short term loan that is unsecured and ranges anything from $500 to $2,000. Depending on the lender, the repayment period may be anything from a few weeks to a couple of months. Lenders will typically align applicants’ repayments with their payday, hence the name ‘payday loans.’

Payday loans can be convenient for people who are looking for a bit of extra cash but can’t wait until their next payday. Additionally, a lot of payday lenders can offer payday loans online to people on Centrelink or people with bad credit.

Are payday loans safe? 

People who are applying for payday loans are generally just looking for a quick fix to their short term cash flow problems. But like everything, payday loans have their downsides. Typically, payday loans have very high interest rates. Not only that, but you could be charged large fees for not paying your loan back on time. In a lot of situations people end up worse off than they began when applying for payday loans.

The difference between paydays loans and personal loans

There are a few key differences between payday loans and personal loans. Payday loans online are short term loans that are expected to be paid back within a month or so. Whereas personal loans typically have repayment terms ranging from 6 months to 2 years. This can save you stress by giving you the breathing room you need whilst repaying.

ans are considered a more financially viable option.

Pros and cons of payday loans and personal loans

Like all things, there’s ups and downs to both payday loans online and personal loans online. The table below depicts the advantages and disadvantages of both.

ProsCons
Payday Loans
  • Easy to access
  • Generally unsecured
  • Bad credit loans
  • High interest rates and fees
  • Considered predatory
Personal loans
  • Easy to access
  • Flexible repayment plans
  • No early payout fee (generally)
  • Bad credit loans
  • Comes with interest and fees
  • Can be secured

Jacaranda personal loans

Although Jacaranda cannot provide payday loans online, we can offer affordable personal loans ranging from $300 to $10,000. So whether you need a bit of extra cash before your next payday, or you’re looking at making an extravagant purchase, we’ve got a loan for you!

We strive to give everyday Aussies the fair go they deserve at accessing finance online. That means we can look past your less than perfect credit score or the fact that you receive Centrelink benefits. We will assess your income and relationship with money to determine whether a personal loan is both suitable and affordable to you. We won’t charge a processing fee if your application is unsuccessful so there’s no reason to stress about applying.

Jacaranda does not provide payday loans online, however we do offer fast online personal loans. If you want to apply, first check if you meet our eligibility criteria below. To be eligible you must:

  • Be 18 years or older;
  • Have an an active mobile number and email address;
  • Be an Australian Citizen or Permanent Resident;
  • Have received a consistent income into personal bank account for the last 3 months;
  • Have internet banking set up.

Can you tick off all the points of the above criteria? If so, you’re eligible to apply for Jacaranda’s personal loans online. Scroll up to the top of this page to begin your application.

What documents will I need?

When you apply for a personal loan with Jacaranda, we will only ask you for the absolute necessities. We recommend you have the following details handy before you start your application to ensure you breeze through it:

  • Personal info (e.g name and DOB);
  • An active email address and mobile number;
  • The reason you are applying for the loan;
  • Your MyGov details (if you are receiving Centrelink benefits);
  • Your online banking details;
  • Employer and contact details.

Can I apply if I have bad credit? 

You sure can! If you’ve been Googling ‘payday loans online’ chances are you’re looking for a lender willing to look past your bad credit. It is true that payday lenders can sometimes offer bad credit loans, however, what you might not know is, so can Jacaranda Finance!

That’s right! Although we will always conduct a credit check as part of our commitment to responsible lending, we can look past your less than perfect credit score. We understand that people make mistakes, but a mistake you made up to 7 years ago might not accurately represent how you are with money today. That’s why, as part of our assessment, we’ll view a read-only copy of your bank statements to verify your income and to indicate to us your spending habits and overall relationship with money. If we deem you’ll be able to afford the loan repayments, we’ll most likely be able to give you a personal loan.

5 ways to improve your credit score

Has bad credit hurt your chances of accessing either payday loans online or personal loans? Improving your credit isn’t something that’s going to happen overnight. Unfortunately, there’s no real ‘quick fix’ for a poor credit score. However, at Jacaranda we’ve drawn up a game plan that, if followed, will improve your credit score over time:

  1. Pay your bills on time: This might seem like a bit of an obvious one, but it’s super important! When assessing your application, lenders will want to see how reliable you are at repaying bills as this is generally a good indicator of future performance. Paying late will also reflect negatively on your credit report so it’s important to pay your bills on or before the due date.
  2. Improve your credit utilization ratio: This fancy term is just another way of saying pay off your debt. People with high credit scores will have low credit utilization ratios and vice versa. You can improve this ratio by paying off debt, keeping credit card balances low and even becoming an authorised user on another person’s account.
  3. Don’t apply for too much finance: A lot of people don’t know this but applying for a loan creates a hard inquiry on your credit report. Too many hard inquiries on your credit report will cause your credit score to dip.
  4. If you move house, notify your credit providers: This won’t directly improve your credit score, however, it means your bills will be redirected to your new address. If you don’t do this you might not receive your bills and might not know to pay them. This is 100% your responsibility and if not done could affect your credit score significantly.
  5. Dispute any inaccuracies on your credit report: If you find any errors on your credit report, you need to dispute and correctly these immediately. You can check this by accessing a free annual credit report from the following credit agencies:

Ready to apply? 

Now that you know the difference between payday loans online and personal loans, have you made up your mind? If you’d like to apply for a personal loan from Jacaranda Finance, simply scroll up to the top of this page. Using the slider, select the mount you’d like to borrow and the repayment period and click ‘Apply Now.’

If you want to know more, head to our FAQ page for more information. Alternatively, you can get in touch with our customer service team to ask us anything!

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Last updated: 19/08/2020, 10:00am

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