Emergency Cash Loans With No Credit Check for Centrelink

If you’re on Centrelink benefits, you probably already know how hard it is to get a loan. Since the government supports you financially, many loan providers won’t trust you enough to lend you money.

Add bad credit to the formula, and you’ve just cut your chance of finding a lender in half.

So, what should you do if you have an emergency that requires some extra cash? Should you just give up? Or can you find emergency cash loans with no credit check for Centrelink recipients?

Well, let’s see if such a thing is possible.

What this article covers:

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Yes, but not all lenders will be willing to give you the money.

Sadly, most lenders, including banks, don’t approve of loans for individuals on government support. They instead look for people with stable, high-paying jobs to ensure that their client repays his loan.

You’d think this would be the case for all lenders, but that’s far from the truth. 

Many private lenders are willing to give money to Centrelink recipients. Not only do these lenders believe in giving Centrelink recipients a fair chance, but they’re also willing to overlook bad credit. 

So, where can you find these lenders, and how can you apply?

Where to Apply for an Emergency Cash Loan With No Credit Check

There are a few different ways you can borrow money without undergoing a credit check. However, each method has its stipulations and turnaround time. So, let’s see which one is most suited for your situation.

Emergency Cash Loan From Private Lenders

If you require a loan urgently, Orange Loans can put you in contact with a lender who’ll get you your money in just a few hours. 

How? You complete an online application stating your personal details and your desired loan amount. We’ll then find you a lender who doesn’t perform credit checks or mind clients with Centrelink benefits. 

Once the lender approves your application, you should have your money in just a couple of hours. This is the fastest way to get your hands on some extra cash without undergoing a credit check. But beware that there’s no guaranteed approval for this type of loan.

No-Interest Loan Scheme 

The No-Interest Loan Scheme, or NILS for short, is a service for Australians with financial hardships. 

With the NILS, you can borrow up to $1500 without undergoing any credit check. Best of all, this loan doesn’t come with any fees or interest rates. You just pay back the amount you borrowed over 12-18 months, no more, no less. Once the loan is repaid, the service will free up the money for someone else to take. 

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As great as the NILS sounds, it does come with its drawbacks. For instance, a NILS loan isn’t easy to acquire. First off, you need to fulfill 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 or 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 medical/dental services, household, and educational items, electrical goods, car repairs, etc. So if you plan on using the money for something like a holiday or guaranteed debt consolidation, you won’t qualify for the Centrelink loan.

Even if you meet all the criteria, you still need to meet 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 he can give you the loan. 

While this process isn’t too time-consuming, it can be too long 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 in Australia allows Centrelink recipients to receive 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

If you qualify, you’ll be able to get a sum of money which will then be automatically deducted from your future Centrelink payments. 

Now, 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. 

Also, keep in mind that you can’t get a Centrelink advance payment if:

  • You live outside of Australia 
  • You have a debt to the government 
  • You’re still repaying an advance you got more than one year ago
  • You can’t repay the loan within the next six months

How Much Can You Borrow With an Emergency Cash Loan?

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Your loan amount will depend on your loan provider. 

If you’re dealing with a private money lender, then you can expect any number from $100 to $5000. 

You won’t be able to get a higher number if you’re a Centrelink recipient, especially if you have bad credit. In fact, some lenders will refuse to loan out more than $2000 to be on the safe side. Still, a $2000 loan isn’t too shabby.

As for emergency cash loans from Centrelink, your loan amount will depend on the type of benefit you’re receiving. 

For instance, Family Tax Benefit Part A can’t borrow more than $1161.71. If you’re on Widow or Student Youth Allowance, the least you can borrow is $250, and the cost is $500. 

On the other hand, age or disability support pension advances depend on the pension itself. So, if you’re single, you can borrow as much as $1372 and as little as $457. As for couples, the lowest is approximately $345, and the highest is $1035.

How Much Will You Pay for an Emergency Cash Loan?

Your loan fees and interest rates will vary based on how much you borrow. 

Basically, all small and micro-loans don’t have interest rates, as stated by the Australian Securities & Investments Commission (ASIC). As such, if your loan is $2000 or less, it can’t have an interest rate. It will, however, have 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 $1000 to be repaid in 1 month, you’ll end up paying:

  • Establishment fee: $200
  • Monthly fee: $40 
  • Total: $1240

But what about larger loans, nearer to the $5000 mark?

Well, these loans come with an interest rate and, most times, an establishment fee. Typically, the interest rate will be around 5.99% per annum, and the establishment fee will be somewhere from $100 to $700. 

Of course, the shorter your loan terms are, the less interest you’ll have to pay. So, if you can, pick the shortest loan term you can find. 

However, if you know that you won’t be able to repay the loan fast, then choose a longer loan term that suits your income and expenses. 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, try to be sensible when choosing your loan terms. The extra interest won’t be as bad as the penalties and late fees. 

What Do You Need to Get an Emergency Cash Loan?

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On the whole, almost all Australian money lenders will give you an emergency loan provided that you:

  • Are a citizen or permanent resident of Australia
  • Are 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

So, if you fulfil all those requirements, you simply need to fill out an online application and attach the following:

  • A copy of your ID/driver’s license 
  • Proof of employment, if present  
  • Proof of Centrelink income (payslip or income statement)
  • 90-day history of your bank transactions

Once the lender reviews your income, you should get a call from him to confirm your details. If everything checks out, the lender will give you the contract to sign, and you’ll get the money shortly thereafter. 

Pros and Cons of an Emergency Cash Loan With No Credit Check

Here are some advantages of an emergency cash loan:

  • Easy and fast to acquire, rapidly allowing borrowers to take care of their emergency 
  • Allows individuals with bad credit to get a loan
  • Can improve your credit score if you repay the loan on time 
  • Most loans have little to no interest rates

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As for the disadvantages, here are a few things to consider:

  • Emergency loans aren’t too large
  • The lenders may ask you to provide a security 
  • Not every lender will agree to deal with Centrelink recipients 
  • You may damage your credit score if you fail to repay the loan 

Conclusion 

Even if you’re a Centrelink recipient, you can still find a lender willing to give you an emergency cash loan with no credit check. However, in truth, he won’t be easy to find. 

Nevertheless, Orange Loans can get you in touch with such a lender. All you need to do is fill out an online application and wait for the lender to give you the contract. This is the fastest way you can get a loan, needing no more than a few hours. 

Still, if you can wait a few days to get the money, then try first to get a NILS loan or a Centrelink advance payment. Thankfully, both these methods don’t require credit checks nor have fees and interest rates. Just make sure you fulfill the specified requirements, and you’ll be golden!

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