Club Money Loans

How does a loan from Club Money work?

People can apply for a Club Money small loan online. Club Money offers loans between $250 and $5,000 which can be repaid within 12 months. Applicants will be charged an establishment fee when they first get the loan and monthly fees each month they are repaying the loan. While repaying the loan over a longer loan term may result in smaller monthly payments as they're spread out, it means they will pay more in monthly fees.

What features are available with a Club Money loan?

• Loan term. Borrowers can choose loan terms from 61 days to 365 days.
• Repayments. Club Money has monthly repayment options. On the set dates, the repayments will be direct debited from the nominated bank account.
• Online application. People can apply for this loan online in an application that takes around 5 minutes to complete. It's important to understand the fees that apply and the eligibility criteria that must be met before applying.
• Bad credit applications considered. Club Money has specific guidelines for bad credit applicants. They can see the eligibility criteria that they will need to meet further down in this review.

What are the risks of short term loans?

• Unaffordable repayments. Short term loans are an expensive way to borrow money and should only be used as a last resort. Check the size of each repayment and ensure you will be able to pay it on time. Unaffordable repayments can lead to late fees that will only make things worse.
• High rates and fees. Rates and fees on short term loans are high but there are rules in place so be sure to check your lender is not charging you more than ASIC allows. Also, look at what you would be charged if you are late on a payment or if you default on the loan altogether.
• Unreputable lenders. All Australian lenders should be accredited by ASIC. Check for a credit licence on the ASIC Register and ensure that the lender is easily contactable.
• Impact on credit score. Every loan application shows up on credit reports. While lenders might not consider credit history, applying for lots of loans within a short period can have a negative impact on your credit score in the future.

How much will the loan cost?

Borrowers are charged fixed establishment and monthly fees but other fees may also apply if they can't pay their repayments on time.

• Loan establishment fee. This is 20% of the principal loan amount.
• Monthly loan fee. Each month borrowers are repaying the loan they will be charged 4% of their principal loan amount as a fee.
• Payment dishonour fee. If a direct debit payment isn't honoured, if one of the payments isn't made in full or if you request a payment to be rescheduled, they will be charged $15 on each occasion.
• Arrears letter fee. If the loan goes into arrears and Club Money write to the borrowers, they will be charged $15 each time.
• Default notice. If the loan is in arrears and Club Money issues a default notice, they will be charged $25.

I have bad credit. Can I still borrow with Club Money?

Club Money will conduct a credit check when borrowers apply for a loan. It does consider applicants with bad credit history but they still need to prove their ability to repay the loan in full. You won't be considered for the loan if:

• Your bank statements show dishonoured direct debit payments to lenders in the previous 90 days
• You currently have more than two short term loans active (small amount credit contract)
• You don't tell Club Money about other loans or financial commitments that you have
• You aren't paid regularly
• A loan from Club Money may be unsuitable or cause financial hardship
• If you rely on Centrelink as your sole source of income

How to apply with Club Money

Applicants can apply for a Club Money loan online in 5 minutes. If they apply during business hours, the approval could take as little as 30 minutes and once approved they may receive the money by the end of the day. How long the fund transfer will take will depend on their financial institution. For example, transfers to the major banks can happen in two hours whereas a transfer to a smaller bank may take one or two business days.

Before applying for a loan with Club Money, applicants need to make sure that they meet the eligibility criteria and have the necessary information to complete the application:

Eligibility criteria

• Be at least 18 years old
• Be an Australian resident
• Earn at least $250 per week
• Have a bank account in your own name
• Have received at least three consecutive payments from your employer into your nominated bank account

Documents and details to provide

Borrowers will need the following information on hand to complete their application:

• Loan information. Amount they want to borrow, preferred weekly repayments and the purpose of the loan.
• Personal details. Name, date of birth, phone number and email address is required on the application.
• Identification documents. 100 points of ID such as the driver's licence or Medicare card numbers.
• Banking information. Private Internet banking details. This bank account will need to show the receipt of three regular payments from their employer.