Last minute loans

A small loan solves a short-term gap; it is not free money, and it is not right for every situation. Worth asking yourself first:

• Do I actually need this? A short-term loan suits an essential or unexpected cost, not discretionary spending.
• Can I afford the repayments? Check them against your real income and expenses, not your best month.
• Am I borrowing the right amount? Fees are charged on the amount borrowed, so a smaller loan costs less.
• Would another option cost less? If one of the alternatives below fits, use it first.

Why applications get declined. We are required to lend only where repayments are affordable, so an application is most often unsuccessful because:

• The repayments would not be affordable alongside your current commitments
• Income cannot be verified, or is not regular enough to assess
• Recent defaults, an active hardship arrangement, or several short-term loans already running
• Frequent dishonours or overdrawn balances in recent banking history
• Application details do not match the supporting information provided
• The basic criteria are not met — under 18, or not an Australian resident

A decline is not permanent. It usually reflects the last few months of banking history, so applying again after that settles often gives a different outcome.

Alternatives worth trying first. Depending on your situation, one of these may cost you nothing:

• No Interest Loans (NILs) — up to $2,000 for essentials with no interest and no fees, for people on a low income or with a concession card. Call 13 64 57 or visit nils.com.au.
• Centrelink advance payment — if you receive eligible payments, you may be able to draw part of it early, repaid from future payments at no cost. Call 13 17 94 or visit servicesaustralia.gov.au.
• Your provider’s hardship program — energy, water, telco and council bills can usually be put on a payment plan, often with the debt paused, simply by asking.
• Free financial counselling — the National Debt Helpline on 1800 007 007 is free, independent and confidential, and can negotiate with creditors on your behalf.
• Impartial guidance — ASIC’s MoneySmart compares options and explains what each really costs.

CashPal is a trading name of Simple Finance Group Pty Ltd (ABN 70 626 186 418), holder of Australian Credit Licence 509422, and operates as a lender and referral service under Australian credit law. Here’s what that means for you:

Responsible lending obligations — We are required to make reasonable inquiries about your requirements, objectives and financial situation before offering credit. We will not approve a loan we believe is unsuitable or unaffordable for you. These duties come from the National Consumer Credit Protection Act 2009 and ASIC’s responsible lending guidance.

Full cost disclosure — You will see the total amount repayable, every fee and each repayment date before you sign your contract. You are under no obligation to accept an offer.

Hardship support — If your circumstances change after taking out a loan, contact us as early as possible; hardship support may be available under the National Credit Code. Free, independent financial counselling is also available through the National Debt Helpline on 1800 007 007.

Complaints and dispute resolution — Raise a complaint with our complaints officer at hello@cashpal.com.au and you will receive a final response within 21 days. If you are not satisfied, you can take it to the Australian Financial Complaints Authority (AFCA) on 1800 931 678 or at afca.org.au at no cost to you. See our dispute resolution policy.

Regulatory oversight — CashPal is regulated by the Australian Securities and Investments Commission (ASIC). You can verify our credit licence on the ASIC registers. For privacy matters, contact the Office of the Australian Information Commissioner (OAIC).