Are Loans For People On Centrelink A Rip-Off?
Cash loans for people on Centrelink are available to many individuals receiving benefits from Centrelink (conditions apply). Many find that Centrelink payments are inadequate to meet their day to day requirements when buying a car, emergency house repair and unavoidable medical treatment among others.
There are even loans for Centrelink customers with bad credit. Although, the loans for people on Centrelink with bad credit will usually come at a higher interest rate.
Online Loans for Centrelink Customers
One of the easiest ways to find cash loans for people on centrelink benefits is through the internet. You can search for online cash loans for Centrelink customers offering these types of loans and compare their offers to find the best one.
The benefit of online loans for Centrelink customers is that it is a fast process. It’s possible to have the loan amount directly deposited into your bank account within a few hours.
The Types Of Personal Loans For People
On Centrelink Payments
On Centrelink Payments
Personal loans for people on Centrelink are mostly of the unsecured type. This is because those applying for instant cash loans on Centrelink benefits usually don’t have collateral or security against which secured loans can be obtained.
Among the most popular options are small loans for people on Centrelink. However, do your research and have a look at the amount being offered and the interest rate being charged.
Centrelink Loans Can Be Expensive
It is worth mentioning that while instant cash loans for people on Centrelink are available, they will be at higher interest rates than other types of loans. Still, you can look for lenders offering cash loans for Centrelink customers that have decent rates. Banks usually charge a decent interest rate, but their process of approving these loans can be quite frustrating.
On the other hand, even though private lending companies offer instant cash loans for centrelink customers on higher interest rates. Nonetheless, there are some organizations that follow a middle road and offer decent Centrelink loans with fast and easy approval.
Before you choose a personal loans for people on Centrelink lender, you must evaluate the deal on the basis of interest rate and approval process. You can further refer to the reviews and recommendations to be found on the internet to move in the right direction.
This is vitally important, because you will get customer feedback on the good and not so good Centrelink loans lenders
Easy Loans For People On Centrelink Payments
If you are receiving Centrelink or Newstart benefits, getting personal loans for people on Centrelink can have its challenges. Most mainstream lenders or banks have very strict lending criteria which can make things difficult for borrowers whom don’t have a full-time job and good credit.
Generally it’s the cash loans for Centrelink customers operations or similar businesses that will provide the loan services for those people on Centrelink payments and those with irregular income or bad credit. In certain instances these types of services may benefit the borrower, but in many cases, they can end up in a worse position.
- The charges and fees on cash loans for people on Centrelink are generally very high. In addition, if you miss your repayment, expect to be slugged with a very high fee and increased interest rate.
- Just make sure you read their terms carefully and fully understand what you are signing up to. As mentioned above, Centrelink loans may be beneficial in certain circumstances.
- If you are in need of a personal loan and rely solely on Centrelink or Newstart for an income, there are options available to you albeit not as many as if you had a job. Below are a range of options which will help you access funds if welfare is your sole method of income.
Possible Alternative Options To Centrelink Loans
Microloans – If you are in desperate need of $100 – $5000 dollars, before signing up for any type of Centrelink loan a Microloan may be an option for you. One of the benefits of a microloan is the speed in which you can receive them (generally within 48 hours). If you are in need of cash immediately, this may be an option for you. As mentioned above, make sure you are aware of the terms and all fees that may be involved.
Specialist Lender – If you are having trouble qualifying with the banks, try a specialist lender that provides cash loans for people on Centrelink benefits. These businesses provide different loan options for people on Centrelink payments, low incomes, bad credit and other circumstances or criteria that may be unfavourable for the banks.
StepUP – Is a program that allows for small personal loans up to $3000. These loans come with a low fixed rate and have no fees or charges attached to them. These loans are typically for everyday living needs, such as a second hand car, household goods (fridge, washer, dryer, etc…), medical treatments, etc…
Centrelink Loans – Current users of Centrelink may be unaware of low income concession cards. This is for a lesser amount than above but can help with certain circumstances. In addition, if you are currently receiving a Centrelink payment, you may be able to receive an advanced payment. An Advanced Payment is a process where you can obtain a part of your normal payment in advance as a lump sum. You can learn more about this service on the Human Services website under “Advanced Payments”.
Community Initiatives – In certain states and cities, there are different types of non-profits or community centres that may provide local residents with micro loans to help with different financial troubles. One good place to start is with your local non-profit financial counselor, they may be able to provide you with more assistance, beyond applying for any Centrelink loans.
Banks/Building Societies – In certain circumstances banks run different initiatives that provide loans for Centrelink customers, or who are on a low income. These programs come and go with the different banks so it is worth asking as they may have a product that suits. Don’t just apply for any random loan that has great rates and favourable terms as you may not qualify based on income source. Make sure that you talk to the banker/lender and discuss your background and directly ask them, do they have personal loans for people on Centrelink available. Do be mindful of your credit score, if you apply for too many loans to multiple lenders in a short period of time, this may have an impact on your credit score in a negative way.
Alternative Cash flow – There are alternative methods beyond instant cash loans for people on Centrelink to create savings or increase disposable income. Look at addressing your current bills and family budget. A reduction in monthly costs across your home and living services can go a long way. Avoid taking out a loan by creating savings through budgeting!
Finding loans on Centrelink payments can be difficult, however there are other ways beyond a loan to access money. In addition to the options above, think about selling unwanted items on eBay or having a garage sale. If you don’t want to sell items, perhaps use a pawn broker. These options are great as you are obtaining money without a loan, potentially keeping you out of further debt.
Picking up part-time work could be another great option, opposed to having to hunt down a loan for people on Centrelink payments.
In the meantime there’s more useful information here