Am I eligible for a payday loan?

Matt Corke 1 September 2015

Finding out if you're eligible is the first step to getting your money.

Payday loans are quick. Lenders offer quick applications, you can receive your money in as little as an hour and they are usually repaid within a few weeks. You might start out simply, comparing lenders and before you know it you've submitted your application.

Payday lenders are meant to have flexible lending criteria, right? Surely you will be approved. This is true, but it's also important to know that the flexibility of criteria differs between lenders.

You need to make sure you meet the minimum eligibility criteria before you submit your application. So, what are the criteria you need to look out for when you're hunting for a payday loan? Can you apply for a loan if you have a default on your file, or if you're bankrupt? Have a read of our guide below to give yourself the best chance of being approved.

know-your-rules Know the rules before you submit your application
Green TickIncome. You will usually need to receive an income to be eligible. Lenders may have rules about where the income comes from, how often you need to receive it and how much you need to be receiving.
Green TickEmployment. Some lenders require you to be in stable employment while others will approve you for a loan if you are unemployed. Receiving an income from somewhere if you are not employed, normally through Centrelink, is often a requirement.
Green TickCentrelink. If you receive Centrelink payments as income there are lenders who will approve you. If more than 50% of your income is from Centrelink, your loan payments cannot exceed 20% of your income. Some lenders may require part of your income come from elsewhere.
Green TickCredit history. Payday lenders are alternative financing solutions, so bad credit applicants are usually considered. Lenders have different restrictions around how bad your credit can be, although some lenders still consider bankrupt applicants and those under Debt Agreements.
Green TickMultiple loans. If you are already repaying one payday loan, have had more than two payday loans out in the last three months or are applying for a payday loan to repay an outstanding payday loan, the lender you're applying with will need to take reasonable steps to prove you will be able to repay the loan without substantial hardship. If you are in this situation you may want to reconsider applying.

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2 Responses

  1. Default Gravatar
    berylAugust 20, 2016

    Need a loan for my dad’s funeral

    • Staff
      ElizabethAugust 22, 2016Staff

      Hi Beryl,

      Thanks for getting in touch and sorry about your situation.

      You can compare your short-term loan options on this page. Each individual lender will have different criteria so make sure to check this before you apply.

      I hope this helps,


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