I need a car to be able to get the kids to school and get a new job. I've just divorced my husband, and while I get some money each week, it's hard to save enough for a car out of that. I need to get a used car and a car loan to get us on our feet and start our new life. I don't really mind what a car looks like as long as it runs well. This blog is about getting loans for getting on with the rest of your life after a divorce and has tips for newly single mums.
You've likely seen ads from lenders offering fast cash loans, but what's the difference between a fast cash loan and a traditional loan product, such as those offered by banks? The main difference is the speed at which your loan application is processed. In many cases, fast cash loans can be paid into your account the same day you submit your application. Lenders offering these products still have to comply with stringent legislation, such as the National Consumer Credit Protection Act, and many will also be a member of the Australian Financial Complaints Authority.
What Can You Use A Fast Cash Loan For?
Fast cash loans can be used for a range of purposes, such as paying for a holiday, buying a car or carrying out home improvements. Think twice before applying for this type of loan to cover basic living expenses, such as food or utility bills, as struggling to pay bills means you're unlikely to be able to commit to making monthly loan repayments. Taking out a loan you can't afford could make your financial situation worse and negatively impact your credit rating.
What's The Application Process?
The application process for a fast cash loan is very similar to the process involved in applying for a traditional loan product. You will complete an application form online that gathers your basic personal information, how much you want to borrow, how long you want to make repayments for and the purpose of your loan.
The lender will then carry out a credit check and affordability check. The credit check only takes a few minutes and involves checking your credit report with a credit referencing agency. The lender has a responsibility to ensure you can afford the loan repayments, so they will use software to connect to your online banking and scan your income and expenditure to ensure you have enough expendable income to repay the loan. They do not get access to any of your passwords and will require your permission to connect to your bank account and carry out this affordability check.
Utilising this software is one of the reasons fast cash loan providers can process applications so quickly and give an instant decision on whether or not they can offer you a loan. Once approved, your money may be transferred into your account that day or the next day.
How Are Fast Cash Loans Repaid?
A direct debit will be set up by the lender and instalments will be taken from your bank account each month for the agreed repayment term. Some lenders allow you to choose the date that your repayments will be taken while others set the direct debit date to align with the day your salary is paid into your account. You also have the option to settle your loan early, and you may be able to do this online through the lender's website or over the phone.
If you're interested in taking out a fast cash loan, shop around online for the best rates available to you and consider your personal circumstances carefully before committing to monthly repayments.
Share10 October 2022
