For people in a pinch who need some cash quickly, payday loans are one option.
These short-term loans, often called cash advances, let you grab some quick cash for those surprise expenses or to help you get to your next paycheck without a hitch.
With a payday loan, you can make rent, pay unexpected bills, or just have a little extra cash to play with.
In this article, we’ll break down some key points about payday loans:
- Why payday loans have a bit of a bad reputation
- The perks of using payday loans
- The difference between low-cost and high-cost lenders
- How to get a loan even if your credit isn't great
- How much you can actually borrow
Why Payday Loans Get a Bad Rap
Payday loans have a bit of a sketchy reputation, and there’s a reason for that.
It’s no newsflash that payday lenders often take advantage of folks who are already struggling.
There have been stories where people got hit with outrageous interest rates—up to 400% on what they borrowed.
Just picture this: a man in Auckland ended up paying $40,000 over four years just to settle a mere $900 loan.
That’s brutal! Thankfully, New Zealand made some changes to the law recently to help with this, capping interest rates and fees at 100%.
So, if that person borrowed the same $900 today, he’d pay a max of $1,800.
Still, there are plenty of lenders who will hit you with rates over 50% per year, which makes them high-cost lenders.
Many payday lenders will hover around 49.5% to dodge the “high-cost” label.
The Upsides of Payday Loans
Believe it or not, there are some good sides to payday loans, even if they can have a rough image.
For starters, they usually don’t stick around for long; you’re typically looking at a few weeks to repay it.
That’s way shorter than a personal loan from a bank, which usually wants you locked in for at least six months.
If you just need a quick fix for urgent expenses, a payday loan can be just what you need without a lengthy commitment.
Plus, they’re often easier to snag than a traditional bank loan, which can be a lifesaver if you’ve got a not-so-great credit score.
But a word of caution: their higher interest rates mean you should really only go for payday loans as a last resort.
They’re for those unexpected hiccups in life, not to be relied on for the long haul.
Is a payday loan right for you?
While many people think they just need to borrow a small amount of money, it usually ends up not being enough, so they have to go to another lender for another small loan.
Before they know it, they’re up to their eyes in debt, and the payments on those small loans add up quickly!
A better option is to borrow a larger amount to cover all your needs.
East Bay Finance offers flexible loan terms, so you can take the loan over a longer period to make it more affordable.
With our unsecured loans, you can borrow up to $75,000*, or up to $150,000* with a secured loan.
Not sure what’s right for you?
You can contact us for a free chat with one of our friendly loan advisors who can talk through your situation with you, and advise you on the best solution for you.
Want to find out how much you could borrow? Try our free online loan calculator.
*Subject to responsible lending checks and criteria
Can You Get a Loan with Bad Credit?
If you’re dealing with bad credit, you might find yourself Googling “bad credit loan.”
The good news is, that even with a chequered past financially, getting a payday loan is still an option.
What matters most is if you can pay it back.
If your income looks good enough to cover the loan, lenders may be on board.
They’ll check out things like your income, credit, and how much debt you’re already juggling.
Just make sure you’re honest in your application—no need to stretch the truth!
And hey, don’t forget to shop around! There are plenty of lenders out there, so compare offers to find the best deal.
East Bay Finance specialises in providing loans to people in all kinds of financial situations, even those with bad credit.
We take the time to listen to our clients and understand their needs so we can provide the best financial services for them.
Get in touch with us today for a free loan assessment. Easy.
Can You Get a Loan Without a Credit Check?
If you have bad credit, you might find yourself searching for loans with “no credit checks.”
Don’t stress about hiding your credit history from lenders; responsible lenders will always do a credit check to get a better view of your financial past.
But here’s the silver lining: if your income is solid enough, there’s a good chance you can still get some cash!
Why choose East Bay Finance
At East Bay Finance, we make the loan application process super easy.
After you complete our simple 2-minute online application form, we’ll get in touch for some more information.
You don’t even have to send in your bank statements! You can give us access using our secure online portal and we’ll take it from there.
We’ll assess your application and put it in front of multiple low-cost lenders to get you the best deal.
Within 1-2 hours* we’ll give you a call to discuss your options, and you pick the one that’s best for you.
It’s so easy!
Everything’s done online, even signing the digital loan documents, so you never have to attend an appointment or fill out paperwork.
With rates from 9.95%* and loan terms from 6 months to 7 years, we provide tailored solutions to suit you.
*Subject to responsible lending checks and criteria
