Can you get a payday loan when you change bank accounts?

Your banking history is one application criteria that short-term lenders can't ignore. So how do you get approved if you've just switched banks?

Short-term lenders, also called payday lenders, operate under various regulations in order to protect you as a borrower. These regulations have been put in place by the Australian Securities and Investments Commission (ASIC) and cover various factors, from how long your loan terms need to be (a minimum of 16 days) to how much lenders can charge in fees. Another requirement is that lenders must check 90 days of your bank account statements. According to ASIC, this condition means the lender can ensure you're in a stable financial situation and that you will be able to comfortably repay the loan.

However, not everyone has 90 days of banking history, particularly if they've just changed accounts. If you're in this situation, find out what you can do in this guide.

Sunshine Short Term Offer

Sunshine Short Term Offer

  • Centrelink borrowers considered
  • Fast approval service
  • Borrow up to $2,000
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100% confidential application

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
  • Fees: 20% of borrowed amount + 4% of borrowed amount each month
  • Bad credit borrowers OK
  • Quick and easy Approval
  • No Credit Checks - Must be employed
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Here are some online payday loans you could apply for

Rates last updated September 23rd, 2017
Name Product Max. Loan Amount Term of Loan Turnaround Time Costs Fortnightly Repayment $1,500 Product Description
Sunshine Short Term Loans
9 weeks
30 Minutes - conditions apply
20% of loan amount + 4% of loan amount each month
Apply online with Sunshine Loans and you could borrow up to $2,000 paid directly into your account. Family Business since 1999.
Nimble Short Term Loan
62 days to 1 year
1 hour - conditions apply*
20% of loan amount + 4% of loan amount each month
Apply for a short term loan and you could borrow up to $2,000
Ferratum Cash Loans
up to 6 months
Same Day if approved
20% of borrowed amount + 4% of borrowed amount each month
A small loan from Ferratum lets you borrow up to $1,900 without a credit check
Cash Train Loans
10 weeks or 3 months
1 Business Day
20% of principal amount (establishment fee) + 4% monthly charge
Apply for a Cash Train loan and get up to $2,000 sent straight to your bank account. Fast online application

Compare up to 4 providers

payday-warningDo you really need a loan today?*

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.

What details will I need to provide to be approved for a loan?

The specific information required varies between lenders, but you will generally need to provide the following:

  • Personal information such as your name, contact details and a form of ID (driver's licence, proof of age card, Medicare card)
  • Your employment information or details of your Centrelink payments (you'll need a receipt for your Centrelink payments)
  • How much you earn, your current debts and assets (if employed, the lender may contact your employer to confirm this)
  • The previous 90 days of your banking history by providing your Internet banking logins or by scanning copies of your statements

Can you be approved without providing 90 days worth of statements?

The short answer is no. ASIC requires all lenders to check the last three months of statements from anyone looking to be approved for a loan, and any lender caught not doing this will be risking its credit licence. You should avoid any lender that offers approval without this requirement, as it indicates a relaxed view towards ASIC's regulations, which are put in place to protect borrowers.

Can you get a payday loan if you've changed bank accounts?

If you have changed banks very recently, you can provide statements from your previous bank or a combination of statements from your previous bank and your current bank. Make sure the statements show the income you indicated on your application, and if you are unsure about whether the statements will be sufficient, check directly with the lender before you apply.

Can you be approved for a payday loan with a savings account?

Lenders need to be able to see evidence of your income, so using a savings account to show your transaction history is not an option. The same goes for people looking to use debit cards as evidence of their banking history. A general rule of thumb is if your pay is not deposited in the account and you don't use it for regular transactions (i.e. it doesn't operate as a transaction account), then you won't be able to use it to be approved for a payday loan.

How do you submit your transaction account information?

In order to keep the application process quick, lenders have developed technologies to access and read your bank statements. During the application process, you will be asked to give your Internet banking logins so the lender can access a read-only copy of your banking statements. None of your transaction history will be stored and the lender will not have access to your account – it will only be able to see your statements to verify the information on them. The entire process is secure and is standard practice for payday lenders and many other alternative finance providers.

How payday lenders use your Internet banking logins

Picture: Shutterstock

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