If you’re not very familiar with same day loans and small lenders who offer instant cash loans, you might have a few misconceptions about these lenders, the process and the validity of the loans. So, in this post, we’re going to clear up a few of those misconceptions and negate any erroneous information you may have heard.
Same day loans are a great concept and have helped many thousands of Australians out of a temporary financial bind.
#1 – These Lenders Are Not Unscrupulous
It seems to be a misconception among some people that if a loan isn’t offered by one of the major banks or financial lenders, then there must be something dodgy about the company offering the loan.
Nothing could be further from the truth. Australia is laden with many smaller, independent lenders who offer fast, same day loans that the big banks cannot compete with. Reputable lenders like Sunshine Loans come to mind, and there are many others as well.
It’s simply a lack of research on behalf of the non-believers. If they took the time to research these same day lenders they’d soon realise what a great option a fast cash loan really is.
#2 – Same Day Loans Have Astronomical Interest Rates
This is also dead wrong. Perhaps the reason some people believe same day loans attract very high interest is that they are equating these lenders with the pawnbroker industry. True, many pawnbrokers will charge up to 30% a month in interest on money they lend, even though they take an item as security against the loan.
For same day loans though, interest rates can often be as low as only 4% or so. Nothing like the rates pawnbrokers charge, and also way under the rates banks charge for personal loans. Same day cash loans are actually a very good deal all round.
#3 – You Can Only Get a Loan With a Perfect Credit Score
Once again, this isn’t true. Of course, it helps if you have a positive track record of paying loans, credit cards and bills, but even big banks will lend to people whose credit history isn’t perfect. Smaller lenders are even a little more lenient. Because the loan amounts are small, these companies are willing to take a little more risk and give people a go.
Hence, if your credit score ain’t perfect, don’t let it put you off applying for the same day loan. You might be surprised with the outcome if you do apply.
#4 – You Can’t Get Same Day Finance If You’re Self-Employed
This can depend on the lender and a person’s credit history, as well as the stability of their income. Having said that, as a self-employed person, you have a far better chance of securing the same day loan than you would by going to one of the big financial institutions.
These lenders have products that are tailor-made for self-employed business people and entrepreneurs. Self-employed might not have the cash flow of bigger businesses, so a fast cash loan is a great way to get some business equipment, or tide you over until your clients pay your invoices. It’s all about having cash flow options and same day loans enable you to juggle your finances to make everything fit in nicely to a timeline.
#5 – You Can’t Get Any Finance When You Receive a Government Benefit
With same-day lenders, you can. You can’t rely solely on a government benefit, but if you receive a Centrelink payment as well as earn some part-time income, you can apply for the same day loan. You’ll need to be over 18 and earn a minimum combined income of at least $300 a week, generally speaking. Be sure to check the lender’s website, though.
#6 – Getting a Loan “Same Day” Is a Falsehood
Some people don’t believe that you can apply for and be approved for finance all on the same day. It’s true, though. So long as you make your application early enough in the day and provide everything required, if it’s assessed and approved during that day, you’ll have the money you requested in your account by the end of that day.