Small Loans Australia

How do small loans work?

Small loans in Australia work by providing you with a relatively small amount of cash that you can borrow – usually between $2,000 to $50,000. It’s a good idea to crunch some numbers first to work out how much you can feasibly borrow before you start getting into applying for loans. An online personal loans calculator can help you see how much repayments would be on the amount you wish to borrow, helping you decide if you can afford it. At Ozzie Loans, our loan application process is super quick and easy. In fact, it can be done usually within five minutes.

You’ll need to be over 18 and a resident of Australia – those are our minimum requirements. Once you have satisfied those, you can go online and apply for your loan. We will look at the information you present, such as your ID, bank statements and information about your credit history. If your loan is approved and you accept the loan offer and conditions, the money can be in your account on the very same day – even within a few hours.

Is taking one big loan better or several small loans?

There’s not really one direct answer, so consider the pro and cons and think about your personal financial situation. If you don’t already have any small loans in Australia, you start with a blank slate and can go from there. Naturally, if you only have one loan, it will be much more simple to manage. That’s only one lot of repayments to remember and also only one set of terms and conditions to keep on top of.

At Ozzie Loans, however, all the repayments are via direct debit from your bank account, so all you have to worry about is that there is enough money to cover the repayments every month. Also, for some big loans, such as a home loan, you may get a better interest rate as the loan will be secured. Securing a loan with an asset can generally lead to lower interest rates as the asset offsets some of the risks to the lender of letting you borrow money.

However, suppose you already have small loans in Australia and are looking for debt consolidation. In that case, one big loan may help out by narrowing repayments down and also, and you need to do your research here, help you out by lowering your interest and fees and charges. However, one big loan may not be useful for a longer term than the loans you already have, for example, as that may lead to you paying more in interest and fees and charges. 

If you think several small cash loans will help you out, perhaps an ongoing line of credit such as a credit card might be of more use. This way, you can access money to borrow for a short period as and when you need it. All you need to do then is to make the repayments in full and on time each month so that you aren’t paying higher interest rates. A virtual credit card is fast and easy to apply for and can be available for you to use within minutes. This might be a more viable option when you are looking for small loans in Australia, so it’s worth considering.

Can small loans help your credit?

Your credit history is affected by several factors, and one of those is if you make a repayment late or default on your loan. That’s why you need to stay on top of your loan payments. That’s another reason why direct debit can be helpful – as long as that money is in your account, you can set and forget. 

However, it’s also important to remember that a credit score is never permanent, and by displaying good financial behaviour, you can get your credit rating looking good again. At Ozzie Loans, we not only reward our customers for having a good credit score initially, but we also work with our customers to improve their credit score with us. Once you have had a loan with us and met all your loan obligations, then next time you borrow money with us, we can reward you by tailoring your loan, for example, with lower interest rates. 

Get the money you need with small loans in Australia at Ozzie Loans. Subject to approval, with our cash loans online, you can have the cash you want in your account the very same day, so contact us today.