Are you a single mother looking for a loan? There is finance available when you need emergency funds.
Under certain circumstances single mothers with bad credit can still get finance. There are lenders who are willing to offer single mothers personal loans based on certain criteria, or by asking for security of some sort. There are even certain considerations made for single mothers with poor credit.
Personal loans allow you to borrow money from a bank or non-bank lender in order to pay for a vehicle or to pay other expenses. Emergency loans are available for those unexpected hard times that can pop out of nowhere. While single mothers usually have difficulty being approved for emergency funding or other personal loans, there are ways around these challenges.
Sunshine Short Term Offer
This is a short term loan offer with a fast and easy online application for bad credit borrowers who are employed. You can apply today to get approved for up to $1,800.
- Loan Amount: $1,800
- Loan Term: 16-30 days
- Turnaround Time: 30 Minutes - conditions apply
- Total Cost of Borrowing $100: 20% of borrowed amount + 4% of borrowed amount each month
- Bad credit borrowers OK
- Quick and easy Approval
- No Credit Checks - Must be employed
Emergency loans that single mothers could apply for
Warning about Borrowing
It can be expensive to borrow small amounts of money and borrowing may not solve your money problems.
Check your options before you borrow:
- For information about other options for managing bills and debts, ring 1800 007 007 from anywhere in Australia to talk to a free and independent financial counsellor
- Talk to your electricity, gas, phone or water provider to see if you can work out a payment plan
- If you are on government benefits, ask if you can receive an advance from Centrelink: Phone: 13 17 94
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.
How does an emergency loan for single mothers work?
An emergency loan or single mothers is a loan that is usually pushed through quicker than other loans. A loan for a single mother, whether it is a personal loan or a car finance loan, is generally not as flexible as a personal loan, and may be affordable depending on your income.
Single-parent loans are usually difficult to obtain as most lenders worry about the mother’s ability to make repayments. For this reason, most lenders won’t consider loan applications if the applicant hasn’t been permanently employed for at least 12 months prior to application, unless there is substantial private income or some form of child support that can be considered in the repayment process.
How to compare emergency loans for single mothers
- Research the lender. Check the lender’s website and make sure they are a reputable company. There have been many cases where scammers have pretended to be a loan provider. Look at reviews to see if previous customers have been happy.
- Take note of interest rates/fees. Rather than having interest rates, emergency loans have a hefty fee to cover the cost of borrowing.
- What range of loan amounts are available. Different lenders may offer different minimum and maximum amounts. You don’t want to borrow more than you need, so you want to apply for a loan for as close to the amount you need as possible.
- Are the loan terms flexible. The terms of the loan should also be compared so you have the optimal time for making repayments. Most lenders will require that you pay back the funds within the ‘next payday’ and will automatically deduct the funds from your account.
The good and the not-so-good of emergency loans for single mothers
- You'll get access to fast approval and funding
Emergency loans for single mothers are fast tracked so the approval and the funding are processed faster than normal loans.
- The loans feature more relaxed criteria
Even if you have an outstanding loan of a poor credit history, you may still qualify for a loan.
- You know what set fees are applicable
The fees are set out before the loan starts, so you know how much you’re paying back.
- There is Inflexible repayment schedule
Since you’re dealing with a small amount of money in a small period of time, there’s often a set date that you’ll need to pay it all back.
- You will probably pay higher fees.
They come with much higher fees and interest charges than personal loan.
Things you should consider avoiding about emergency loans for single mothers
- Be careful of borrowing too much.
When you’re in need of emergency funds it can be easy to borrow more money than you actually need. While this might help your current financial situation, it could cause you more problems in the end. This is because over-borrowing can put you into deeper debt and you may find it harder to repay the loan.
- Watch out for the expensive fees and penalties.
If you take the first loan you see you might be saddled with high and frequent fees or extra penalties for certain things. For example, if you don’t compare available loans you might find yourself paying an unnecessary application fee or unnecessary ongoing maintenance fees.
Ready to apply? What the single mother should consider
In order to apply for an emergency loan, you’ll first need to see if you’re eligible for the loan in question. Most of these loans require you to be over 18 years old and an Australian resident. Once you've completed your comparisons and figure out if you’re eligible for the specific loan you’re looking at, you’ll have to see what documents you’ll need to apply for the loan. You’ll usually need identification information like a passport or driver’s licence.