If you’re already receiving Centrelink payments, then you understand just how helpful the extra cash can be, no matter your situation. Of course, there are times you made need a little more to tide you over.
Whether you’re hoping to take off on a family holiday or find yourself in an accident with hospital bills to pay back – life can be unexpected at the best of times, and we can’t always budget for it. So, what exactly are your options when it comes to getting a loan on Centrelink?
Getting A Loan On Centrelink
When looking at getting a loan on Centrelink, it can often feel like your options are very limited. If you’re relying on Centrelink for payments, many lenders aren’t as willing to take a risk on you. Many lenders will offer you fast cash loans, which are ideal for covering car repairs, hospital bills and other unexpected bills that crop up from time to time. But what if you’re looking for something more?
Getting a loan on Centrelink doesn’t have to be difficult. It’s important to know that traditional lenders aren’t your only option. If you look beyond the banks, you’ll find there are plenty of non-traditional lenders, ready to take you on and help out with your financial needs. It’s about shopping around and looking at all the different options on the market. Don’t let your Centrelink payments hold you back.
Getting A Loan On Centrelink – Types Of Loans Available
If you’re looking at getting a loan on Centrelink, the first thing you need to consider is what type of loan you’re looking for.
Here are some for you to consider and choose from:
- Personal loans: this is one of the most common types of loans people choose to take out. While many traditional lenders might overlook you if you rely on a Centrelink income, there are plenty of non-traditional lenders to help you out. A personal loan is just that – for your personal use. It can help pay for that new fridge, or get you overseas to see family. They generally have lower interest rates than credit cards and can be used for any purpose.
- Car loans: looking to purchase a new car? Don’t let your Centrelink payments hold you back. There’s no reason getting a loan on Centrelink should be any more difficult than getting a regular loan. You can use your Centrelink payments as security for your loan, which can also help to lower the interest rate.
- Payday loans: there are times you need a simple cash injection to tide you over until your next payday. These loans are generally under $2000 and are ideal for the short-term. However, you want to make sure you have the means to pay off the loan before you take it out. Otherwise, you could find yourself spiralling into debt.
- Centrelink cash advance: it’s also worth looking into whether your eligible for a cash advance on your current Centrelink payments. Generally, you only have the option to do this once a year, but that could be all you need to get you back on your feet.
It’s important to take a look at your individual circumstances and work out what loan is best suited to your needs. Once you know what you’re after, you can shop around for the right lender who is happy to take you on with your Centrelink payments.
Taking Out A Loan
Before taking out a loan on Centrelink payments, it’s important you’re prepared and know what to expect. You should never take out a loan you can’t pay back. Here’s what you need to consider:
- Don’t miss payments: this will result in fees and also impact your credit score. Plus, you end up paying more interest over time so the debt costs more.
- Factor it into your budget: work out how the loan can fit into your existing budget. Will you be able to pay it back each week? Do you need to cut down on some other expenses?
- Read the fine print: make sure you know exactly what you’re signing, and all the fees involved before going ahead. You don’t want any nasty surprises.
Keeping this in mind will put you in the best position possible to pay back your loan and stay out of debt in the long run.
Are you ready to take out a loan using your Centrelink payments? Then chat with the experts at Australian Lending Centre today. Whether you have a bad credit score or are relying on Centrelink as your income, they will happily find the right loan to suit your needs. Pick up the phone and give us a call today.