Want $4,000 cash today? We tell you how you could be approved.
What are your options for a $4,000 loan?
The lending market in Australia offers you various options when it comes to seeking a $4,000 loan, and finding out what your options are can help you narrow down on the right one. So what kind of loans can see you receiving $4,000 today?
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 $2,000.
- Loan Amount: $2,000
- Loan Term: 9 weeks
- 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
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.
- Payday loans
A payday loan or cash advance loan normally refer to the same kind of personal lending facility. These loans are unsecured in nature, and they attract fixed interest rates given their typically short loan terms. Repaying these loans might require you to set up automatic repayments in advance, and your repayments are usually lined up in accordance to your paydays. As the loan is for a larger amount, $4,000, you'll likely be offered longer terms than some payday loans, which by law can only be as short as 16 days.
- Unsecured personal loans
Unsecured personal loans offer longer loan terms when compared to payday loans, and in case of a $4,000 loan you can expect terms of up to three years. These loans can attract fixed or variable interest rates. While fixed rate loans offer the benefit of stable repayments through the course of the loan, variable rate loans allow you to benefit from interest rate cuts.
- Secured personal loans
This loan type usually offers the most competitive interest rate, which can be fixed or variable. To secure the loan you can provide security in the form of home equity, a vehicle, or a term deposit.
- Bad credit loans
While most lenders conduct credit checks before they approve loans, this is not always the case. This means you can look for a $4,000 loan irrespective of what your credit file looks like. Lenders who offer bad credit loans look at your existing financial circumstances as well as your ability to make timely repayments. These loans are usually unsecured, so you don’t have to worry about providing collateral. What you should know, though, is that these loans attract high interest rates and normally won’t offer much in the form of flexibility.
- Overdraft/flexible loan
An overdraft or flexible loan is not the same as a conventional loan, and it allows you to withdraw funds until you reach an agreed limit, which, in this case, is $4,000. With such a loan, you only pay interest on the outstanding balance and not the entire credit limit. If you don’t need the entire $4,000 all at once, this type of loan can help you save in the form of interest.
What you should be considering when comparing $4,000 loans
Once you've decided on the best type of loan that will suit your needs, the next step is comparing your loan options from different lenders. Here are some things to keep in mind when comparing:
- What is your Interest rate going to be?
Interest rates can vary considerably even with the same kind of loans, and this is especially true of bad credit loans. The interest rate can be a good indication of how competitive a loan is, so is an important aspect to take into account.
- What fees and charges are in your contract?
When you take a $4,000 loan you will always end up paying back more than that and the interest it attracts. This is because of the fees and charges you have to repay through the course of the loan. These can include application fees, establishment fees, monthly service fees, and settlement fees. If you miss any of your repayments, you can also expect to pay late payment penalties.
- What kind of repayment options available?
Many lenders allow you to choose between making weekly, fortnightly, and monthly repayments, so you're able schedule your repayments according to when you get paid. Some lenders allow you to make extra repayments without charging any penalties, and some allow you to pay the entire balance ahead of time without penalising you in any form. In some cases, you might have to pay a fee if you pay the entire amount ahead of time, so check all the charges that apply before doing so.
- Can you get access to redrawing funds?
If a lender allows you to make extra repayments on your loan, find out if you can access to these funds through a redraw facility. This facility may attract a fee and come with set withdrawal limits.
How you can increase your chances of being approved
While there is no telling for certain if a lender will approve your application or not, a little caution on your part can definitely increase the possibility of a successful application. Read through the following before you apply:
- Make sure you're eligible for the loan
Applying for a loan when you’re not eligible will lead to a rejected application, and this can have a negative impact on your credit score. The eligibility criteria for the $4,000 loans compared on finder.com.au is listed on the review pages, so you can confirm if you meet this eligibility criteria before you click 'Go to Site' in order to take the next step towards applying. Things to confirm include: minimum age requirement, minimum income, credit history requirement, residency status, employment status, and any specifications regarding your receipt of Centrelink payments.
- Think you know what's on your credit file?
Did you know that errors can creep into your credit file, and these can reflect poorly on your creditworthiness? It can help to go through your credit file before applying for any kind of credit by ordering a free copy online. If you find errors ensure you take these into account before applying. That is, consider whether your credit history is still considered 'good'.
- Limit your applications
Your credit file will show just how often you apply for credit, and when you apply for credit often, prospective lenders may view this in a negative light. As a result, compare your options well before you apply and keep the applications to a minimum.
You should think about how you’ll go about making repayments even before you apply for a $4,000 loan. When you don't make timely repayments your credit file can be adversely affected, and you’ll also have to deal with late payment charges. Besides, the longer you take to repay the loan, the more you might have to pay in the form of interest.
A simple way of establishing what your repayments will look like is to use a loan repayment calculator. Start by identifying if you wish to make weekly, fortnightly, or monthly repayments, and then enter details such as the loan amount, loan term, and interest rate.
If you're applying for a $4,000 loan:
Know what helps
- They offer varied loan terms.
With loan terms varying between 16 days and seven years, you can opt for one as per your financial needs and situation.
- Apply online with ease.
The online presence of most lenders helps simplify the entire process. You can start by applying online, and you can keep track of the loan online, as well.
- Some loans have no credit checks.
Individuals who cannot get conventional loans because of poor creditworthiness have the option of lenders that don’t require credit checks, or of those who do but will consider bad credit applicants regardless of their history.
Know what does not
- Steep interest rates.
Certain loan types, like bad credit loans, tend to attract higher interest rates, so think twice before applying for such a loan. Unsecured loans traditionally charge higher interest rates as well when compared to their secured counterparts.
- Higher repayments.
When you combine higher interest rates with shorter loan terms, the result is increased repayments. Consider if these repayments will be affordable before you take the loan on.
- Dubious lending.
The number of online lenders in Australia is on the rise, and this field is not devoid of its share of disreputable lenders. Certain lenders may exploit people with poor creditworthiness through exorbitant fees and rates, so ensure any loan you take on is competitive and that the lender holds a reputable place in the market.
What to avoid with $4,000 loans
Taking any kind of a loan can come with its share of pitfalls, so it’s best that you avoid the following:
- Don’t end up getting a loan that you can’t repay. Make sure you have a plan in place when it comes to making repayments.
- Avoid taking out a bad credit loan if you have access to other loan options. High fees and inflexibility are two reasons ASIC cites when warning borrowers against such loans.
- Avoid taking the first loan that comes your way— remember to compare your options to ensure you take on one that is the best for you, and that is the most competitive.
Questions everyone has about these loans
How do I go about applying for a $4,000 loan?
Start by comparing your options on this page. Once you find a loan you want to apply for, click the ‘Go to Site’ button to take find out more about applying or to fill out an application form.
What options do I have when it comes to repayment methods?
In some instances, you will have to set up direct debits through your salary or a bank account. Other repayment methods some lenders offer include making payments via online funds transfer, Australia Post, BPAY, and via cheque.
Do such loans offer loan protection insurance?
Certain personal loans give you the choice of getting loan protection insurance as an optional extra.
Can unemployed individuals get $4,000 loans?
Lenders look for some form of guarantee before they approve loans, and if you’re unemployed you might have trouble in meeting their minimum income requirements. If a large portion of your income comes via Centrelink benefits, you could still qualify. As mentioned previously, check the eligibility requirements before applying to ensure you're eligible.