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 off 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.

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Sunshine Short Term Offer

  • Bad credit applicants considered
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  • Borrow up to $2,000
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Sunshine Short Term Offer

A short term loan with a fast and easy application available to those with good or bad credit. You can apply today and get approved for up to $2,000.

  • Loan amount: $2,000
  • Loan term: 9-15 weeks
  • Turnaround time: 30 minutes (conditions apply)
  • Fees: 20% of borrowed amount + 4% of borrowed amount each month
  • Income requirement: 50%+ of income cannot be from Centrelink
  • Bad credit borrowers OK
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Here are some online payday loans you could apply for

Updated March 25th, 2019
Name Product Maximum Loan Amount Term of Loan Cash Deposited In Costs Fortnightly Repayment (for $1500 Loan)
9-15 weeks
30 minutes - conditions apply
20% of loan amount + 4% of loan amount each month
A small loan up to $2,000 that you repay over 9-15 weeks. Loans approved and funded in as little as 30 minutes. Centrelink must not be your primary income
Up to 2 years
3 hours - conditions apply
Apply for up to $2,000 and be able to access your approved loan as a convenient line of credit.
62 days to 1 year
1 hour - conditions apply
20% of loan amount + 4% of loan amount each month
A loan up to $2,000 with terms up to 62 days to 1 year. Centrelink cannot be your primary source of income.
6-12 months
Same day - conditions apply
20% of loan amount establishment fee + 4% of loan amount monthly.
Credit24 offers this loan up to $2,000 and gives you 12 months to repay.
3-12 months
1 business day
Establishment fee from 10% of loan amount + monthly fee from 2%
A small loan between $500 and $2,000 that can be funded in 24 hours.
6 to 12 months
20% of loan amount + 4% of loan amount each month
A short-term loan from $500 that you can have up to 12 months to repay. All credit histories considered.
up to 12 months
Within 48 hours
20% establishment fee + 4% monthly fee
Cash Converters offers this loan from $400 that gives you up to 12 months to repay.

Compare up to 4 providers

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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