Purple Payday Loan Review
Purple Payday are a short term payday loan matching service for loans up to $2,000
Purple Payday offer financing options up to $2,000. To apply for a payday loan, customers can submit an application through Purple Payday to be matched with an online lender. It is a loan matching service that works by searching through its panel to match applications with lenders who can approve loans for people in need. Customers won’t be charged for using the service and Purple Payday accepts applications from borrowers with bad credit.
Maximum loan amount
Term of loan
|Product Name||Purple Payday Loans|
|Minimum loan amount||$100|
|Maximum loan amount||$2,000|
|Loan term||1-12 months|
|Turnaround time||Same day - conditions apply|
|Costs||20% of borrowed amount + 4% of borrowed amount each month|
|Requirements||You must be over 18 and have a regular source of income (minimum $800).|
|Available to Centrelink Borrowers?||No|
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
Do 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.
How does a loan from Purple Payday work?
Purple Payday is a service which matches prospective payday loan borrowers with lenders.
Applicants can find out if they meet the eligibility criteria and then submit an application form online. Purple Payday will search through its panel of lenders to find a suitable option. Customers will then be redirected to the lender’s page where they can review the loan and the repayments. If they're happy with the terms, they can agree to the loan.
What features does Purple Payday offer?
Applying for a payday loan with Purple Payday offers several features. These include:
- Straightforward application. Customers can apply online and complete an application within minutes. Purple Payday makes a match, the borrower will be directed to its site quickly to review the loan terms.
- Access to various lenders. Applying with Purple Payday gives customers access to a panel of lenders. This allows for more chance of being approved.
- Bad credit applicants may still be eligible. Customers who have bad credit are still able to apply. Some lenders on the panel have flexible eligibility criteria regarding credit history.
- No obligation application. Borrowers can submit their application to review the terms offered by the lender and be under no obligation to accept them.
What are the risks of payday loans?
- Unaffordable repayments. Payday loans are an expensive way to borrow money and should only be used as a last resort. Check the size of each repayment and ensure you will be able to pay it on time. Unaffordable repayments can lead to late fees that will only make things worse.
- High rates and fees. Rates and fees on payday loans are high but there are rules in place so be sure to check your lender is not charging you more than ASIC allows. Also, look at what you would be charged if you are late on a payment or if you default on the loan altogether.
- Unreputable lenders. All Australian lenders should be accredited by ASIC. Check for a credit licence on the ASIC Register and ensure that the lender is easily contactable.
- Impact on credit score. Every loan application shows up on credit reports. While lenders might not consider credit history, applying for lots of loans within a short period can have a negative impact on your credit score in the future.
How much will a loan cost?
This depends on the lender an applicant is matched with. For loans under $2,000 with terms of 1-12 months, lenders cannot charge more than the following:
- An establishment fee that is 20% of the principal loan amount
- A monthly fee that is 4% of the principal loan amount
- A government fee or charge
- Default fees and charges
- Enforcement expenses
How to apply
Purple Payday applications are accessible fully online. Prospective applicants will need to meet the following eligibility criteria to qualify. They must:
- Be an Australian citizen
- Be 18 or older
- Have an active bank account
- Have a regular source of income - Applicants will have more success of getting a loan if they are in full-time employment
Applicants must also have the following details and documentation to hand:
- Loan details. Loan amount, term and purpose.
- Personal details. Their name, gender, birth date, phone number and email address.
- Address. Where they live and how long they've been there – they may also need to provide a previous address.
- Employment. Where they work, their position, how long they've worked there, how much they earn, how often they get paid and their next pay date.
- Bank details. Account type, bank account number, BSB and name of the account holder.
- Finance details. The amount they pay in rent/mortgage payments, credit and loan payments, their monthly expenses and whether they've experience hardship or defaulted on loan repayments in the last six months.
Purple Payday offers an alternative payday solution by matching customers with a lender from its panel that they deem suitable. However, it is still always a good idea to compare lenders yourself prior to submitting an application. Comparing lenders and considering alternatives allows people to make the best possible decision for their circumstances.