Getting a payday loan after recently changing bank accounts

Banking history is an application criteria short-term lenders can't ignore, so can customers still apply after a recent bank switch?

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Short-term lenders, also called payday lenders, operate under various regulations out in place to protect borrowers. These regulations have been put in place by the Australian Securities and Investments Commission (ASIC) and cover various factors, from how long the 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 bank account statements from their applicants in order to determine their eligibility. According to ASIC, this condition means the lender can ensure if someone is in a stable financial situation and that they will be able to comfortably repay the loan.

However, not everyone has 90 days of banking history, particularly if they've just changed accounts. For prospective payday loan applicants in this situation, find out what to do in this guide.

Are you struggling financially?


If you're struggling financially and would like to speak to someone for free financial advice, information and assistance you can call the Financial Counsellors hotline on 1800 007 007 (open from 9:30am to 4pm, Monday to Friday). If you are suffering financial problems related to the coronavirus pandemic you may be eligible for additional support. Find out more here: https://www.finder.com.au/coronavirus-financial-help

⚠️ Warning about Borrowing

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.

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Compare payday loans

Name Product Maximum loan amount Term of Loan Turnaround time Arrears Fee Costs Fortnightly Repayment (for $1500 Loan)
Sunshine Short Term Loans
$2,000
9-14 weeks
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$35
20% of loan amount + 4% of loan amount each month
$396
A small loan up to $2,000 that you repay over 9-14 weeks. Loans approved and funded in as little as 30 minutes.
Nimble Short Term Loan
$2,000
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1 hour - conditions apply
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20% of loan amount + 4% of loan amount each month
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A loan up to $2,000 with terms up to 62 days to 9 months. Centrelink cannot be your primary source of income.
Fair Go Finance Small Loan
$2,000
3-12 months
24 to 48 hours
$35
0% Establishment Fee + monthly fee 4%
$354
A small loan between $500 and $2,000 that can be funded in 24 hours. Note: Save up to $400 when you apply for a small loan from $500 to $2,000 and are approved for a 0% establishment fee. T&Cs apply.
Jacaranda Finance Personal Loan
$10,000
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Borrow up to $10,000 and get access to your funds in as little as 1 hour.
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What are the risks of payday loans?

  • Disreputable lenders. Check the lender has a credit licence and is not charging you more than ASIC allows. The lender should be easily contactable.
  • Unaffordable repayments. Consider the size of the regular repayments and ensure the loan is able to be repaid during the loan term. If not, extra fees apply to extend it. Be careful, since repayment periods for these kinds of loans tend to be shorter than regular loans.
  • Multiple applications. Every loan application shows up on credit reports. While lenders might not consider credit history, several applications within a short period can have a negative impact on your credit score moving forward.
  • Check rates and fees. Establishment and monthly fees are capped, so be wary of lenders quoting prices beyond the legal maximum amounts. Be crystal clear on what will be charged for late payments or a default on the loan. The total cost of the loan matters here - lenders can charge interest rates on top of everything else.
  • Long-term repercussions and legal issues. Once the loan agreement is signed, the customer is bound to its conditions until the loan and any associated rates and fees have been paid. Typically these loans are unsecured, which means that the lender can initiate legal proceedings against the customer if they can't repay.

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

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

  • Personal information such as their name, contact details and a form of ID (driver's licence, proof of age card, Medicare card)
  • Their employment information or details of their Centrelink payments (they'll need a receipt for their Centrelink payments)
  • How much they earn, their current debts and assets (if employed, the lender may contact their employer to confirm this)
  • The previous 90 days of their banking history by providing their Internet banking logins or by scanning copies of their 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. Prospective applicants 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. Lenders who do not adhere to these regulations may be disreputable and looking to take advantage of people facing financial difficulty.

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

For customers who have changed banks very recently, they can provide statements from their previous bank or a combination of statements from their previous bank and their current bank. Applicants should make sure these statements show the necessary income amount as stipulated by the lender with which they apply, as indicated on their application. If someone is unsure about whether the statements will be sufficient, they should check directly with the lender before submitting an application.

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

Lenders need to be able to see evidence of an applicant's income, so using a savings account to show 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 their pay is not deposited in the account and they don't use it for regular transactions (i.e. it doesn't operate as a transaction account), then they 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 efficient, lenders have developed technologies to access and read bank statements automatically. During the application process, applicants will be asked to give their Internet banking logins so the lender can access a read-only copy of their banking statements. None of their transaction history will be stored and the lender will not have access to their account – they will only be able to see 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

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