A cash advance is any type of loan facility that allows you to quickly obtain cash for spending. Generally, a cash advance facility is able to make funds available to you within seconds, or over a maximum of two business days, and are among the most expensive modes of financing available in Australia.
There are a few types of cash advance facilities available in Australia, including payday loans, credit card cash advance, and bank overdraft. Each option carries a variable interest expense. Although payday loans require application and approval, a cash advance obtained on a credit card or through bank overdraft is usually pre-approved and readily available for withdrawal.
To be eligible for a cash advance, applicants must:
Be over the age of 18. Have a regular income, more than 50% should come from non-Centrelink sources. Prove sufficient affordability to make timely repayments.These criteria are only relevant when applying for a payday loan cash advance. In other cases, such as a credit card and bank overdraft, you will probably be pre-approved for the cash advance facility.
*For eligibility and details for applicants residing in South Africa, go to Viva Payday Loans South Africa.
|
Type Of Cash Advance |
Maximum Amount Available |
Turnaround Time |
Charges, Rates, And Fees |
|
Payday Loans |
$2,000 |
One hour or same day disbursement |
20% loan establishment fee and 4% monthly fee on the principal loan amount |
|
Credit Card Cash Advance |
Variable, pre-approved limit by the credit card provider |
Instantaneous |
An interest rate of between 9%-22% per annum is applied, plus some additional fees |
|
Bank Overdraft |
Variable, pre-approved limit as set by your bank |
Instantaneous |
Variable, depending upon the terms and conditions as set by the bank |
The maximum you can borrow under a payday loan cash advance is $2,000, although some lenders might be willing to offer higher amounts. For a cash advance facility linked to your credit card or provided as a bank overdraft, the maximum borrowing limit would be decided by the lender.
Yes, if you fail to make timely repayments on your cash advance loan, it will have an adverse impact on your credit score.
The cost applied to a cash advance varies depending on your chosen mode of financing. A payday loan may be the most expensive cash advance option, while a cash advance obtained through a credit card might charge anywhere between 9% to 22% per annum. A bank overdraft cash advance might be the cheapest option available, depending upon the terms and conditions set by your bank.
Check your options before you borrow:
* This statement is an Australian Government requirement under the National Consumer Credit Protection Act 2009.
The Government’s MoneySmart website shows you how small amount loans work and suggests other options that may help you.
* This statement is an Australian Government requirement under the National Consumer Credit Protection Act 2009.