7 fast cash loan myths - busted!
Everyone gets a little strapped for cash sometimes. And it’s likely that at some point you may have thought about getting some quick money for an unexpected expense or to purchase that bright and shiny new thing that you just can’t live without for a second longer. Small cash loans have certainly become increasingly popular over recent years - that’s because they can be your knight in shining armour when your financial need is urgent.
There are a number of myths and misconceptions that surround the availability of fast cash loans but we’re here to bust them out – so let’s dive in!
Myth #1: It takes a long time to be approved
Fact: Quite the contrary, a fast cash loan, as the name suggests, is pretty fast - once you’ve submitted your online application, it usually only takes a few hours to be approved*. And once the paperwork is signed and returned, the cash is in your account!
Verdict: Busted!
Myth #2: Only banks offer them
Fact: Wrong! There are loads of financial institutions across Australia who offer fast cash loans at competitive interest rates. And if you’re concerned that a non-bank lender doesn’t have the same credibility as a bank, you just need to do your homework. A good place to start is by reading the lender's customer reviews because these are testimonials from actual people who have already experienced their services.
Verdict: Busted!
Myth #3: Fast cash loans are expensive
Fact: One of the most common reasons why many people hesitate to apply for a fast cash loan or a personal loan is because they think it will be expensive and have a high-interest rate. To make things nice and simple, here at Safe Financial we don't charge any interest on our small personal loans up to $2,000 - instead we only charge an establishment fee and a set monthly fee. And, there are no exit fees if you wish to repay early - so you can save on costs! But for most of us, the main concern with taking out a loan is whether or not you can afford the repayments. That’s why we make it easy with our mini loan calculator – just enter the amount you want to borrow to find out what you weekly repayments would be over the loan term, inclusive of any applicable fees or interest.
Verdict: Busted!
Myth #4: There are hidden costs and charges
Fact: If there are hidden costs and charges for fast cash loans, then that’s just defeating the purpose of helping you out during your financial difficulties. This misconception is rooted in the fact that most of us don’t read the terms and conditions before signing the papers. The reality is that it’s illegal to hide charges and add costs to what has been agreed, so lenders in Australia must be transparent and straightforward about their fees and charges.
Verdict: Busted!
Myth #5: It will hit your credit score
Fact: Each of the three main credit reporting bureaus in Australia have their own secret way of calculating your credit score - and this is based on many factors. The best way to improve your credit score positively is to make sure you repay your loans on time, every time. Generally, applying for any type of finance will have an impact on your credit score, so that's why it always pays to scrutinise your options first before applying.
Verdict: Explained!
Myth #6: I will not be approved because I have a bad credit score
Fact: While it’s true that your credit history will be part of the application approval process, a poor credit history doesn’t always mean you won’t get your loan approved. Some lenders like Safe Financial welcome applications from anyone – we can’t guarantee instant approval, but we have approved loans for many people with some credit issues in the past.
A fast cash loan could even help you develop a relationship and credit history directly with a lender, but generally you will need to have a steady income at the time of application and not have multiple unpaid loan defaults on your credit report or be in a Part 9 Debt Agreement before being approved.
Verdict: Busted!
Myth #7: Fast cash loans are only for poor people
Fact: We all need immediate financial assistance from time to time, especially if there is an unexpected emergency. You might be feeling a bit cash-strapped right now but that won’t always be the situation. Taking out a loan doesn’t imply social status or financial stress - it simply means you needed immediate financial assistance and that’s it.
Verdict: Busted!
How to get started
If you struggle to save because you spend pretty much everything you earn, it’s time to take stock. Create a budget and focus on 1 or 2 regular luxuries that you could cut out in order to save. If you’re already in debt, consolidation may be the key, and if its up to $5,000 we're here to give you a helping hand. Just check out our fast cash loans to $5,000 to find out how quick and easy it is to get your hands on some extra funds. Once a loan is approved, we can usually deposit the cash into your bank account within a few hours!