*Only available for NPP enabled bank accounts
- It's possible with Nifty.
*During normal business hours.
When you don’t have the cash to cover expenses, who do you turn to? You don’t have to borrow from our family and friends! You can apply for personal loans today.
With our fast-paced world, littered with roadblocks and advertisements, it can be difficult to know which lending practices are right for you. The internet is a maze and you’ll find hundreds of lenders who claim to offer the best loans. However, if you’re not an expert with borrowing and lending (why would you be), it’s hard to know what loans you should look for. If you’re in search of quick or instant cash but are rather confused with what the best option for you is, keep reading! Nifty has covered everything you need to know to make the best financial decisions.
A loan comparison is always a balancing act, weighing up the disadvantages and the advantages of each option. So, we are going to investigate the options available and how you can choose the best option for you. So, let’s take a look at the scales.
Personal finance generally refers to small loans ranging from pocket change ($100) to the cost of a second-hand car ($5,000). Most lenders require you to repay your loan within 1-5 years. Some lenders are more flexible than others with loan terms. We’ll tackle the art of comparing lenders later on.
Firstly, let’s look at the main two types of online personal loans; unsecured loans and secured loans.
An unsecured loan is typically a small personal loan that is not “secured” by equity. This means you won’t have to attach an asset like a car or motorbike to your loan. Unsecured personal loans are less risky for the borrower, as there is no chance of repossession, if the borrower is not able to pay back the loan. Due to the higher risk for the lender, the borrower will most likely be able to borrow smaller amounts than with a secured loan. Additionally, as the lender assumes more risk with this type of loan, they tend to charge higher interest rates.
Secured loans are personal loans that are secured by equity/assets. The asset could be any type of vehicle, such as a motorbike, car, boat or caravan. With a secured personal loan, the risk lies with the borrower. If you are consistently unable to make repayments, the lender has the power to repossess your equity to cover the costs of the loan. This is typically only done as a last resort, however. On the plus side, as the risk is less for the lender, the interest rates tend to be lower and you could borrow a larger amount.
When looking for personal finance, you’ll mostly come across both these options. With all this choice, you may find yourself wondering which is best. It however, depends on the reason for your cash loan. If you’re looking to borrow a small amount to tie over your monthly expenses, then unsecured is probably a better option for you. On the flip side, perhaps you’re hunting for a used car, and need an extra fund boost, then a secured loan may be the better fit.
To find the right finance option, you need to take the reason for your loan into consideration.
You may be thinking that applying for a loan is stressful and complicated. Well, before the birth of the internet, you would be required to travel to the bank and wait in lengthy queues to apply for a cash loan. However, the internet has gifted the world of finance with a platform to make borrowing easy.
Nifty is one of the online lenders who has made lending ridiculously easy. Nifty is 100% online. We have a streamlined, fast and easy application you can finish in just minutes. There is no waiting in lines and no physical paperwork involved when applying for our personal loans. So, say goodbye to red tape and mountains of paperwork and say hello to cash loans in an instant.
How instant you ask? With Nifty, you can get an outcome on your personal loan application in just 60-minutes if you apply during our business hours! In addition, if you’re approved and once you’ve signed your contract – you could get your funds in just 60-seconds*!. Isn’t that Nifty?
Our application is so simple it could take you only a few minutes to complete. Simply choose the amount you want to borrow, the loan duration and if you want to pay your instalments weekly, monthly or fortnightly.
If you apply during our business hours we could have an outcome for you in just an hour. If we need more documentation or information from you, we’ll get in touch. So keep an eye on your phone after submitting your application.
If you’ve been approved for a loan, we’ll send over a loan contract for you to review and sign? We urge you to throughly read over the terms and conditions to familiarise yourself with any fees and charges for late or missed payments. When you’re happy, e-sign it and send it back to us.
Once approved, your cash could be in your account and ready to use in 60-seconds with NPP bank accounts! If you don’t have an NPP-enabled account, your funds will be with you by the next business day at the latest.
Online lenders (like us!) are traditionally more lenient than traditional lenders, (like the big banks). Nifty Loans does adhere to responsible lending practices, and would never approve an applicant that couldn’t afford their loan repayments. Furthermore, we think every Australian deserves a fair go at getting finance, even those who suffer from bad credit.
That’s why we offer bad credit cash loans!
We don’t assess your application solely on the basis of a credit check. Instead we prefer to look at the whole picture. That’s why we access a read-only copy of your bank statements to view your spending habits and overall relationship with money. If you’ve been receiving a regular income for the last 90-days, and have been meeting other repayments you may have, then you might be eligible for bad credit finance!
Most Australians over the age of 18 own either a debit card or credit card. Before we dive into credit cards, it’s important to note the difference between a debit card and a credit card. A debit card doesn’t allow you to borrow credit. You only have access to the funds in the bank account connected to the card.
When you make a purchase with a credit card, you may decide to borrow credit to pay. Once, you’ve used this credit, the credit card company then charges you interest on your purchase. Typically, credit cards incur high-interest rates, however, they are a handy line of revolving credit.
With the beauty of the internet, credit card applications, (like personal loans) are also online! You can apply from the comfort of your living room, over breakfast, or on the commute to work. However, before thinking about applying for a credit card, take a look at these 3 simple steps:
With the power of the internet, financial applications are accessible to anyone, no matter where you are or what you’re doing.
Should you charge your latest expenses to a credit card, or take out personal finance? We’ll try to help you answer this question. Nifty may be 100% online, but we’re old fashioned at heart, so we’re going to use the classic pros and cons scenario to compare personal loans and credit cards.
The main advantage that stands out for short term lenders are the lower interest rates. That means you spend less money on interest! Interest is essentially a fee for ‘renting’ moolah from a financial lender. Of course, lower interest rates can vary depending on which financial lender you choose. Furthermore, Nifty has affordable and competitive interest rates!
With lower interest rates and fewer fees, short term loans are typically cheaper in the long run, when compared with credit cards. That means more money for the things you love!
Budgeting your loan repayments into your weekly, fortnightly or monthly budget will see your loan repaid in no time! The trick with budgeting is to stick to it. If you do that, then you won’t be tempted to spend your funds allocated to repayments. Therefore, personal loans may be the ticket to saving and halting those impulsive buys when you can’t afford them.
You can also use personal finance to consolidate your debt. Debt consolidation is simply the act of combining multiple loans into a single low-interest rate low. Of course, this does increase your monthly repayments, however, it will be cheaper in the long run.
Of course, like everything in life, there are disadvantages to taking out quick cash loans to pay for expenses.
Cash loans are only for a finite amount of time. If you require an extra boost to your funds again, you must apply for another loan. Applying for several fast loans, especially within a short period of time, may have a negative effect on your credit score. If your credit score is already bad, perhaps making out short term finance is not the right option for you. Don’t fret though, we have a secret solution for you: debt consolidation.
Compared to credit cards, personal finance is less flexible. Once you sign a small loan contract, you are obligated to keep it. Some lenders may charge an early exit fee if you repay your loan off early. However, Nifty believes that you shouldn’t be punished for being good with your finances and wanting to pay off your loan early. With us, thereæs no early payout fee!
These disadvantages are important to consider when deciding between an instant loan or a credit card for your financial needs.
Let’s take a look at credit cards. Credit cards are a viable option if you’re searching for a borrowing platform, however, are they better value compared to online cash loans? Let’s find out!
After you apply and are approved for a credit card, you have an immediate line of credit to spend. It’s an instant transfer of moolah! So, if you’re in need of something urgently, a credit card is an ideal option.
A massive advantage of having a credit card is the rewards! Who doesn’t want to be rewarded for spending money? It’s the ultimate dream. Well, with credit cards it can be a reality. The rewards will depend on which credit card company you choose and how much you spend. It’s certainly a massive plus, with couples claiming they paid for their honeymoon with credit card rewards.
Besides an abundance of rewards, credit cards also provide a constant flow of cash. With a constant line of credit, you can spend your credit whenever you want and however you want.
With all these great advantages to owning a credit card, there are certainly some equally big disadvantages.
Credit cards can leave you caught in a cotton wash cycle that never ends. Credit cards provide constant access to funds and hence, the temptation to spend and incur credit is very high. Obsessively using credit cards to make impulsive purchases can lead to a cycle of unmanageable debt. Monthly credit card bills only require a minimum payment, which can contribute to a cycle of debt.
Credit cards traditionally carry higher interest rates, compared to personal loans. As a result, you spend more in the long run if you always use a credit card for large expenses.
Here are some questions to ask yourself when you’re considering taking out personal finance or credit cards.
If you are looking to make a large purchase (up to $5,000), then perhaps a same day loan is more appealing. Often with lower interest rates, these loans could cost less in the long run. If you’re simply looking to pay for a few odd expenses, though, then a line of credit through a credit card may still be your best option. And don’t forget the rewards!
Cash loans come with an end date, whereas credit card debt can be never-ending. So, consider your current financial commitment and see how flexible you are. Can you stick to a repayment budget? If so, then make it fun! Design a budget that is more like a vision board. Something you enjoy looking at and interacting with. Whether it’s on the computer or hanging in your kitchen.
If the answer is yes, then consider personal finance. Some lenders allow you to transfer credit card debt over to a cash loan. Before consolidating your debt, shop around for the most suitable option for you. ASIC’s Money Smart is always a good place to start your search for anything in finance.
When it comes to making tough financial decisions, it always comes down to your individual circumstances. However, hopefully, this breakdown of personal loans and credit cards has given you a good idea about what you need.
Remember before making your decision between loans and credit cards, keep these tidbits in mind:
Consider all your options before applying for a personal loan and remember that our loan specialists are always ready for a chat.
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*If your bank supports NPP transactions
Since founding Nifty in 2016, Bell has continued to make waves within the local financial sector for his continued ambition and willingness to adopt emerging technologies.Read More
$300 - $2,000
* Not applicable. Small loans do not charge an annual interest rate.
** WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Different loans may include other payable fees and charges. All fees and charges will always be displayed on your loan contract.