Things You Need to Know before Applying an Online Loan

If you have only lived at your current address for a short period, you will usually need to supply your past address, as your lender will require these to perform a thorough credit history check on you.

It’s essential to check your bank’s online loan calculators to help you decide how much you want to apply for. It’s a good idea only to borrow what you need over a comfortable period for you to repay. The more you borrow and the longer you take to pay it off, the more you will likely pay interest charges. More significant loan amounts often carry significantly lower interest charges, so borrowing more can offer a better APR. However, it will usually still cost you more over the entire life of the loan.

Before your meeting, also think about your regular outgoings. You will be asked how much you spend on various things, like rent and mortgage repayments, groceries and bills. It’s sometimes difficult to remember these costs when you’ re on the spot, so take a look through your bank statement in advance and work these costs out, so you have them to hand.

When applying for online loans, what will I need?

The number of documents and the amount of information you will be required to provide to an online lender will depend on the type of loan you are applying for and the amount of money you want to borrow.

When you apply for a personal bank loan online, you will need to provide all the same information as applying in person. The application process usually involves filling in an online form and sending in documents to support the information you have entered.

Applying for a payday loan online can be a much simpler exercise, and you will rarely have to send off masses of documentation to support your application.

Check your credit rating in advance

If you take the time to sign up to a credit rating agency such as Experian, you will be able to take a look at your own credit file before applying for a loan. This is something we can all do to empower ourselves financially. If your credit rating needs work, it’s advisable to take measures to increase it before you apply for credit, as applying and being turned down can lead to further damage to your credit score.

Use ‘soft search’ tools

Many online loan providers and banks may offer you the chance to check the likelihood of you being accepted for a loan through a tool using a ‘ soft search’ approach. These tools can take a cursory look at your credit report and find loans that might be suitable for you without carrying out a full credit check. These searches can take place without your credit score being affected and are therefore a great way to minimise the risk of being turned down when applying for a loan.

Is it quicker to apply for payday loans online?

Yes, applying for an online payday loan or any short-term low-value loan online will usually be relatively quick and simple.

You will be asked for:

  • Personal details to confirm your identity, your age, your address and your nationality.
  • Whether you own your own home or if you are renting and the details of all your regular outgoings and expenses.
  • Bank details so that your funds can be deposited into your account and sometimes to allow for continuous payment authority to be set up
  • Employment details to confirm your employment status and income
  • Details of your payday and how much you are likely to receive

If you are really in need of quick cash for personal expenses, make an online application with My Cash Online today.

*Disclaimer & Example: For our Small Loans of $2,000 or less, an APR (Annual Percentage Rate) doesn't apply. These loans are fee-based only with a term between 62 and 180 days, and so the APR is 0%. The establishment fee is 20% of the amount borrowed and the monthly fee is 4% of the amount borrowed. Representative example: a loan of $1,000 repaid over 3 months equates to a total amount payable of $1,320 comprised of $1,000 principal (amount borrowed), $200 establishment fee and $120 in monthly fees. The maximum comparison rate on loans between $300 and $2000 is 199.43%.
For our Medium Loans between $2,100 and $5,000, with a term between 2 months and 12 months, the maximum Annual Percentage Rate (APR) is 48% (Comparison rate 65.6597% p.a.) and there is a $400 Establishment Fee. A Medium Loan of $3,000 borrowed over 1 year would equate to a total amount payable of $4,289 (including a $400 establishment fee).

Under the current legislation, most small personal loan providers don’t charge an annual interest rate (you’ll know this as an APR %). The maximum you will be charged is a flat 20% Establishment Fee and a flat 4% Monthly Fee. The maximum comparison rate on loans between $300 and $2000 is 199.43%. This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

© 2023 Owned by Australian Synergy Finance Pty Ltd, ABN 54 613 655 646. Australian Credit Licence 490422. The information on this webpage is general information only and does not take into account your objectives, financial situation or needs.