Types of Fast Cash Loans in Australia
Despite having a good salary, we sometimes may face a situation when there is no enough money at hand and a financial urge arises. In such cases, short term instant cash loans are very helpful though they come with a high interest and upon renewing, cost us hands and legs. Here are some types instant cash loans in Australia.
Fast Cash (Pawnbroker) Loan
A pawnbroker can give you instant cash just the same day. The only requirement for a pawn loan is that you should have a valuable item, such as a car, boat, motorcycle, etc, to place as collateral. Against the car or other valuable item, you can get money for a short term. The collateral, car, truck, boat or motorcycle should be in a good working condition. You will also need the papers of ownership and your identification proof. The process of getting a pawn loan is so hassle-free and you can get the loan even if your credit history is bad, as pawn brokers don’t conduct any background checks or credit checks. So, you can understand why fast cash loans are so popular. Here are some benefits of these loans:
- Quick loans
- Instant loans even if the individual is unemployed
- Loans with no credit check
- Same day loans
Credit Card Loan
While with a credit card you get instant cash, its cost is very high. The Annual Percentage Rate (APR) for a cash advance is much higher than what you actually paid for your purchases. In general, the least cash advance APR at most banks is higher than 20%. Moreover, most banks charge cash advance fee starting from 2% and can go up to 5% of the amount you borrow. Besides this, the amount of interest starts accumulate immediately without any grace period, which means you should repay the loan as soon as possible so as to stop the fees from spinning out of control.
Online Personal Loan
Online personal loan is a relatively new type of loan and the lenders usually approve the loan in one business day or even in an hour. Here your credit is checked and interest rates depend on your credit history. On an average, 36% is the rate. Sometimes other factors are also considered like your business or profession.
Payday loan is also given without checking the credit; however, you should have a bank account and a regular paycheck so as to qualify.
Payday loans should be taken carefully because they have a tremendously high interest rate. If you are not in a position to arrange money for your emergency situation, it’s doubtful that you can pay the loan amount (with interest) in just a couple of weeks. So, that’s the way payday loans make profit.
All in all, among all the four options to acquire a quick cash loan in Australia the safest one is the pawnbroker’s loan.