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Am I eligible for a payday loan?

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

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-rulesKnow 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.

Tips to get your payday loan application across the line

  • Check the last three months of your bank statements. The lender will be checking these so you might want to take a look too. The lender will be looking for red flags such as your account being overdrawn the pay you receive into your account not being consistent with what you state on your application. Other transactions, such as gambling transactions, can also be an issue.
  • Don't apply for more than you can afford. Just because the lender allows you to apply for a certain amount doesn't mean you should, for example, to see how much you could get. This could lead to the lender rejecting your application altogether rather than just approving you for a lower amount.
  • Provide as much information as possible. Many applications become delayed when the lender has to chase information. It can also lead to automatic systems not approving you for a loan instantly, simply because you didn't provide everything that was required. Check everything that the lender needs from you and make sure you send it.
  • Double check the eligibility criteria. Lenders set minimum eligibility criteria which you need to meet before you apply. If you don't meet one or more of the criteria, do not apply. It will lead to a rejected application on your credit file and this will make it more difficult to get approved for a different loan.

Picture: Shutterstock

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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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