There are many benefits to getting a Centrelink loan. One of which is to use the funds in debt consolidation to pay off your existing debt.
For borrowers who are currently receiving benefits from Centrelink, they may find it difficult to get a loan. We run through the ‘dos’ and ‘don’ts’ when it comes to applying for a Centrelink Loan to help in improving their chances of approval.
Apply for a Cigno Centrelink Loan today!
How to apply for a Centrelink loan
A Centrelink loan is designed for borrowers whose income comes mainly from Centrelink and has a relatively low income. While some banks and lenders do not consider applications from borrowers who are on Centrelink, Cigno can assist in your loan application for up to $1000.
When applying for a Centrelink loan from Cigno, you can expect a speedy outcome and fast transfers. Cigno will require you to submit your address, contact details, and your recent 90-day bank statement. If further details are needed, you’ll be notified immediately to avoid any delays in the process.
The dos of getting a loan on Centrelink
A Centrelink loan could help you to get out of a tricky situation and achieve your financial goals. Before agreeing to one, make sure to consider some of the Dos.
- Do read the fine print — With any type of loan, you have to read the fine print. Some loans like payday loans come with high-interest rates, which you may not be aware of and can result in difficulty to pay back.
- Do have an emergency fund — Many people resort to Centrelink payments to cover urgent costs like bills or a car repair. Having an emergency fund can prepare you when unexpected circumstances pop up.
- Do learn and understand about Centrelink payments — Make sure to understand your Centrelink payments and their limitations. Just like Youth Allowance, not all lenders accept these types of payments. Learn more about Centrelink payments and their consequences.
The don’ts of getting a loan on Centrelink payments
Loans can be a good financial tool. Following the Don’ts below can help to ensure you’re taking the proper steps.
- Don’t skip a loan payment — If you miss a payment, you also have to pay additional fees and penalties, aside from more interest. These can add up over the life of your loan.
- Don’t forget about your budget — Your new loan should be included into your budget? Remember that having a Centrelink loan is an added responsibility.
- Don’t expect an automatic approval — Given that your lender accepts Centrelink income, that doesn’t guarantee your loan application will be approved. When in doubt, ask a professional.
What loans can I receive on Centrelink?
Learn the types of loans on Centrelink payment available to you and review the eligibility requirements before applying. It usually depends on your specific financial standing, your job, and your Centrelink program.
Usually, lenders offer these loans on Centrelink payments:
Personal loans — These types of loans usually require a minimum income, and not all types of Centrelink income are accepted.
Car loans — Your payments serve as security for your car loan, which usually comes with a lower interest rate.
Payday loans — A payday loan is usually a short cash loan of up to $2,000.
Centrelink cash advance — A cash advance on your Centrelink payments is possible and a good alternative to a loan.
Overdraft — If you’re in good financial standing with your bank, an overdraft facility might be possible. You can draw a certain limit from your account for emergencies, even if you have a low or no balance.
Apply for a Cigno Centrelink Loan today!
Disclaimer: Please be aware that Cigno Loans’ articles do not replace advice from an accountant or financial advisor. All information provided is intended to be used as a guide only, as it does not take into account your personal financial situation or needs. If you require assistance, it is recommended that you consult a licensed financial or tax advisor.