Bad Credit Same-Day Loans in Australia

Emergencies can bring about the most unexpected expenses in times of financial hardship. While it’s common for people to loan money from their bank in dire situations, it may be difficult to qualify for a personal loan if your credit history is bad. 

And sometimes, getting a bank loan might not be the best option. For example, you might need money urgently, but it takes up to a week before you can receive your loan. As such, if you’re in a situation where you either have a bad credit history or you’re in immediate need of money, it’s worth considering other alternatives.

Bad credit same-day loans are a fussless and quick way to receive the financial help you need. Read on to learn more about how they work in Australia!

What this article covers:

What Are Bad Credit Same-Day Loans?

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Bad credit same-day loans smoothen the loaning process by offering quick application processing and approval and a fast release of the requested sum of money into your bank account. 

The lenders also don’t consider your bad credit history, which makes these loans a good option if you urgently need money to settle an emergency and your bank can’t help.

Before your personal lender loans you a sum of money, they take a look at your application, employment, banking history, etc. Unlike banks, this process is swift and inclusive. Once you’re approved and the process is finalised, the money is directly deposited into your bank account within 24 hours.

Do I Qualify for a Bad Credit Same-Day Loan?

There are several requirements you have to meet before qualifying for a same-day loan in Australia. Here are the general conditions, but remember that they’ll slightly differ from one provider to another.

  • You must be over 18 years 
  • You must be a permanent resident or citizen of Australia
  • You must have had an active checking account for a specific period
  • You must provide your proof of income and valid identification
  • You may need to provide your MyGov account details
  • Your income must meet your borrowed amount’s requirement
  • If you’re attaching a vehicle as security, you need to provide its general information

What Information Do I Need to Provide?

Generally, you’ll need to share the following information with your lender:

  • What you’ll need the money for
  • Your recent banking history and banking transactions
  • Your personal information and contact details
  • Your current employment
  • Your checking account
  • 100-points of identification

How Can I Get a Bad Credit Same-Day Loan?

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The best way to get a same-day loan is to apply on a website that’ll connect you with its network of legitimate lenders. Let’s understand how this process works.

For starters, you have to decide on the sum of money you need and the time you’ll need to pay it back. This is important because you’ll pay back the lender weekly, fortnightly, or monthly.

Once set, you have to apply on your lender-finder website of choice. Make sure to provide the information needed (your personal, employment, and banking details). Note that the application process takes a few minutes. 

After your application is approved, the website will pair you with a lender that meets your specific needs. If you approve of them, you’ll personally discuss your loan with them.

You can also get same-day loans from lending companies operating through online websites. However, make sure they’re legitimate before going through their process.

When Can I Receive My Loan?

It takes a few minutes for your application to be approved once you submit it. From there on, you might be paired with an appropriate lender anywhere from a few minutes to a few hours. All in all, you’ll receive your requested sum in 24 hours. Remember that transfer times also depend on your bank, so try to apply during business days to quicken the process.

If you apply to a website that isn’t an intermediary, meaning it directly loans you the money you need instead of pairing you with a third-party lender, the money may be deposited in your account immediately after your application is approved.

Interest and Fees on Same-Day Loans

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Contrary to other loan types, same-day loans generally come with high interest rates that may be a cause for concern for you. Sometimes, they might even have you stuck in a cycle of getting more loans to reimburse past ones. So, we recommend only getting same-day loans if you’re confident you can pay them back.

Interest rates will differ from one lender or another, but expect rates of up to 48% from some lenders. Additionally, there’s an establishment fee you should be aware of. So expect to repay a maximum of 20% of the loan amount when getting one.

Once the fees, interest, and loan amount add up, you’ll find out that you’ll have to pay much more than you originally borrowed. Same-day loans are a quick way to solve your financial crisis, but they’re not cheap.

How Are Bad Credit Same-Day Loans Repaid?

Your lender will set up weekly, fortnightly, or monthly direct debits that match your income once you provide your proof of income and active bank account. 

If you can’t pay your loan back on time, you must contact your lender to discuss an alternative repayment plan. If you fail to do so, you’ll risk paying a dishonour fee, which differs from one lender to another.

However, try to pay the loan back on time to avoid further complications with your credit score.

Are Same-Day Loans Secured or Unsecured?

They can be both. You can attach an asset to your loan to secure it. It has some advantages, but you might lose your asset if you’re not careful. Let’s better understand this process.

Secured Personal Loans

A secured personal loan is a risk-free way for money lenders to loan you large sums. Since your asset is attached to the loan, they have the right to repossess it if you consistently fail at repaying your loan.

Unsecured Personal Loans

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An unsecured personal loan doesn’t have your asset attached to it as collateral. In this scenario, money lenders are hesitant to lend large sums to individuals, as they pose a greater risk of losing money if the latter defaults on payments. So this is the way to go if you’re looking for a small loan.

What Can I Do If My Lender Repossessed My Asset?

If you consistently fail at repaying your loan, your lender might repossess your vehicle (or other assets). If this happens, you’ll have to pay the past-due repayments and the repossession fees before you get it back. In extreme cases, you might permanently lose your asset if you can’t pay your loan back.

Where Can I Get a Bad Credit Same-Day Loan in Australia?

Here are a couple of websites to get you started. We recommend you do your research before getting involved with an online money lender, as no one understands your situation better than you!

1. OrangeLoans

OrangeLoans is an intermediary that connects you with a legitimate, reputable money-lender. 

Once you submit your application and it gets approved, you’ll be connected with a lender that meets your criteria in minutes. From there on, you’ll deal with them personally. You can get loans for up to $10,000, and OrangeLoans guarantees complete transparency and a helpful customer support team in case you’re not satisfied with their service.

Pros:

  • Lightning-fast service — you’ll be in contact with a lender in minutes
  • Fast application approval times
  • Reliable service — simple and easy with guaranteed legitimate lenders
  • Intuitive user interface

Cons:

  • Your experience will vary from one lender to another

2. MiFinance

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MiFinance is a lending company that offers loans for up to $5,000. Since there are no third-party lenders involved, you’ll receive your money as quickly as possible. Once you submit your application, it can take a few hours before you receive your money. Additionally, there are several payment plans, so you’ll find something that’ll exactly satisfy your needs.

Pros:

  • Quick application approvals
  • Fussless process — apply and receive your money in hours
  • No third-party lenders involved 
  • Several repayment plans

Cons:

  • Maximum loan amount of $5,000

Conclusion

Same-day loans are an option if an emergency comes up and you’re in urgent need of money. There are several websites in Australia that’ll either connect you with legitimate lenders or directly loan you the amount you need, so you’ll have to do your research to find what’s best for you.

However, keep in mind that these loans generally come with high fees and interest rates. If you’re not careful, you may get stuck in a cycle where you’ll keep getting loans to reimburse past ones. So be vigilant towards your finances!

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