Top Five Centrelink Loan Questions

Can I get a credit card while on Centrelink? If you rely solely on Centrelink as your income it may be difficult to get approval for a normal credit card. There are pre-paid credit cards and debit credit cards which you should be able to get relatively easy. These can be used for renting cars or booking things online. They have all the same benefits of a normal credit card but utilise you own money versus borrowing.

If you are employed and collect Centrelink benefits your chances of approval for a general credit card improve. Getting approval for a credit card comes down to showing the lender that you can easily meet their minimum eligibility criteria. It you are unsure about meeting certain criteria, call the lender before applying as an application denial will go on your credit report.

Can I get a Centrelink car loan? There are many small lenders which will say that they lend to those collecting Centrelink benefits but the reality is that few make it through the actual approval process. As with any lending process, approval comes down to proving to the lender that you can meet their minimum eligibility criteria.

If you are a low income earner and or on Centrelink and are in desperate need of a car the Nils specialty program may be your best bet of getting a favourable car loan. Learn more about this program here.

What are the best cash loans available for people on Centrelink? Depending on your situation there are multiple cash loan options for welfare recipients. One of the better options is Centrelink Advanced Payments as this is a cash advance and not a loan. This is ideal as it isn’t borrowing which can help keep you out of debt and paying interest. Low Income Loans Australia provides a wealth of information on different money options based on circumstance; learn more about these loans and benefits here.

What loan options are there for people with bad credit and on Centrelink? Benefits and financially based community initiatives are your best bet for financial assistance if you have a bad credit history and collecting Centrelink. There are numerous programs mentioned throughout this website which cover most scenarios for financial assistance. Examples include assistance with utilities, household appliances, rent assistance, second hand car purchase, food and more.

Should I use quick loans or payday loans to borrow from? Many Australians turn to quick and payday loan providers for assistance as they have trouble qualifying for loans from banks. Whilst these types of lenders have easier approval criteria the costs of borrowing from them can be very high. They also have high fees should you have issues with your repayments.

Make sure you understand the full terms and costs associated with borrowing from a payday lender before doing so, there are other options available outlined throughout this site.

Please share any experiences with money assistance which may help further answer these common Centrelink borrowing questions below.

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