A pay advance might allow you to access a portion of your next pay on demand. You can avoid the commitment of a loan and have your advance repaid by your next pay day. Interested to learn more? Monzi explores pay advance apps and how they might change your approach to borrowing. After an alternative? Monzi’s lender-finder makes finding cash loans a breeze. Apply from $300 to $10,000 today.
Please note, certain ideas and products presented in this article may not be offered by Monzi nor the lenders we work with. This article presents only general information. Consider seeking professional financial, taxation, legal or other advice to check how the information and ideas presented on this website relate to your unique circumstances.
What is a pay advance?
Pay advances are the newest trend in personal finance. In the past, if you needed a small cash injection, you may have had to apply for a cash loan. These days, you can potentially access your wages on demand to address the shortfall instead.
These pay advances are often more cost-effective and flexible than other forms of finance. You can apply and receive your cash in minutes. Usually, you can borrow up to a certain percentage of your regular take-home pay. From there, you can spend the cash on whatever you need. On your next pay day, you must repay the amount you borrow plus a fee. As a result, you’re left with no further commitment.
Note that a pay advance shouldn’t be confused with a cash advance. While they are both types of credit, a cash advance is a type of principal and interest loan where you borrow and repay your loan in instalments. A pay advance is repaid in one sum on your next pay day.
Get your pay on demand Australia: what are the benefits?
New pay on demand apps are all the rage. However, given that it’s only a fairly recent development, you might be wondering what the benefits are. Luckily, Monzi’s here to explain.
The first benefit of accessing pay now is that it involves less commitment and lower costs than a small loan. These apps allow you to borrow a small amount of your earned wages which are then repaid with a fee on your next pay day. As a result, you don’t have to worry about on-going loan repayments.
In addition to this, providers may not conduct credit checks and can potentially transfer your cash in minutes. Given this, there’s less time to wait, which can be a relief when a cash emergency has got you down.
Beyond this, there may be other benefits for you to experience. Continue reading as Monzi explores pay advances in-depth. That way, you might decide if it’s right for you.
How do pay advance apps Australia work?
It’s really simple.
First, you must find an app and sign-up. With this, you must provide a valid ID and details on your online bank account. Moreover, you must be employed. Providers will verify your income details by assessing your recent bank statements.
Once your account is open and verified, you can then apply for a wage advance whenever you require it. Your provider will transfer your cash into your nominated account and you can spend it. To repay your debt, a direct debit will be implemented. When your next pay day arrives, the amount you borrowed plus a fee will be deducted from your account.
As a result, a pay advance might help you smooth things over until your wage is deposited. However, remember that it’s best to only apply in an emergency.
What apps give you money before payday?
At Monzi, we’re not here to say which is the best pay advance app. If you want a pay advance today, some apps you may consider include:
As an alternative, there is currently one pay on demand service offered by an Australian bank. Through CommBank AdvancePay you might be able to access your wages on demand when you’re in a bind. However, if you fail to make your repayment, then significant fees and interest charges may apply.
What should I compare when looking for a pay advance app?
As the number of pay advance apps increase, it will be crucial to compare the features. That way, you can find the one that offers the best product for you.
To begin with, confirm how much you can apply for. Some apps may let you borrow up to a certain percentage of your income. Others will place limits (e.g. from $100 to $750). While you are there, check the income requirements too. In other words, what amount must you be earning to apply for an advance?
Next, consider the fees and costs. Usually, your provider will simply add your fee on top of your repayment that occurs on your next pay day. However, some advances may come with higher fees than others. Where possible, it’s best to pay less.
Finally, check out the user experience. Most of these pay on demand services operate exclusively via mobile apps. With this, you must ensure that it is compatible with your phone and easy to use. Reading past user reviews online might be the best place to start.
Do pay advance apps check your credit?
In most cases, they don’t. Credit checks aren’t necessarily a requirement, given the nature of the agreement. This includes when you sign up for an account and when you apply for an advance. As a result, if you have bad credit, this may be a welcome response.
That said, before creating an account, it’s best to confirm that this will be the case. Submit a contact form via their app or read the FAQs. They should outline whether or not a credit check will occur.
How much can I borrow?
The exact amount you can apply for may vary.
With some apps, you may be able to borrow up to a percentage of your regular income. For instance, it may be 25%. Therefore, if your next pay cheque will be $1,000, you can potentially borrow up to $250. That said, in most cases, there will be a minimum and maximum amount that you can borrow (e.g. apply from $100 to $750).
Ultimately, providers do need to lend responsibly. As a result, don’t expect to apply for an advance equal to your weekly salary. Instead, providers will usually limit the amount you can borrow to ensure you’ll still have enough cash to cover your expenses over the coming weeks.
Are there any costs?
As with all loans and credit products, a pay advance won’t be free. Instead, you must pay a fee. The exact fee will be determined by the pay advance app you are using. Generally, it will be calculated in one of two ways.
Firstly, some apps will charge a flat fee based on your advance amount. To put this into an example, one provider might charge a $5 fee on advances up to $300 and a $10 fee on advances greater than this.
The alternative method also exists where your fee is calculated as a fixed-percentage of the amount you borrow. Let’s say it’s 5%. That means that on a $100 advance, your fee would be $5. However, on a $500 advance, it would be $25.
Ultimately, it won’t be free. Therefore, consider the costs before applying. While a small charge here or there may not seem significant, the costs can add up.
Pay advance alternatives
A pay advance might be one option if you’re in a bind and need fast cash today. However, there are plenty of other options. Monzi explores some alternatives to pay advances below:
The most common way to borrow money is via a personal loan. In short, these loans are standard principal and interest credit products. That means that if you are approved, your lender will transfer your loan amount to you. From there, you can spend it freely, while your costs are divided into even repayments over a fixed term of a few months or years.
Through Monzi, you can apply for online loans from $300 to $10,000 with repayment terms of between 12 and 24 months. We might match you with a lender in just 60 minutes. Give it a try today!
Best of all, there’s no need to find a personal loan app, just apply through our mobile-friendly website.
Buy now pay later (BNPL)
The last great innovation in personal finance, buy now pay later companies have taken Australia by storm. It’s not hard to see why. Rather than paying the full price for your item upfront, you can instead divide the costs into even, interest-free instalments over a few weeks or months. As a result, if you’ve got an item in mind that you must buy ASAP, it could help smooth the costs to better suit your budget.
Cash advances loans, sometimes referred to as payday loans, are small cash loans for amounts up to $2,000. In most cases, you must repay these loans over a short term. As a result, they can often be expensive and difficult to manage for your budget.
In addition to this, you may be able to get a cash advance through your credit card. With this, a credit card cash advance involves withdrawing money from your credit card account. Often, these transactions come with a fee. Moreover, interest may be charged on any money you owe.
At Monzi, we work with lenders who offer personal loans from $300 to $10,000. These loans may be a more manageable alternative.
Pay on demand for Centrelink
While you can’t exactly get a loan from Centrelink, you may apply for an advance payment. This involves receiving a fraction of your future payments early as a lump sum. You can then use your advance to address whatever expense you are dealing with. Centrelink advances are interest-free, but the amount you borrow will be taken out of your future payments.
Obviously, this option will only be possible for eligible Centrelink customers. If you are a benefit payment recipient, get in touch with Centrelink to determine whether you can apply for an advance. Just remember that it will reduce your payments going forward, so consider any impact that it might have on your budget.
No Interest Loan Scheme (NILS)
The NILS is one of many community schemes designed to assist low-income Australians to access safe and affordable credit. As a guide, you must use these loans to cover necessities such as educational supplies or appliances (e.g. fridges and other white goods).To be eligible, you must meet certain criteria and fall below an income threshold. Do your research to determine if it is an option for you. You may find that it’s a more suitable alternative to a pay advance.
Earn some extra cash
Finally, if you do want to avoid borrowing altogether, you could look to earn some extra cash. Luckily, it’s not as hard as you might think and there are several ways to do it.
First, you could sell products on Facebook Marketplace. As a guide, this could be old furniture or stuff you no longer need. Next, you might be able to pick up odd jobs in your local area on apps like Airtasker. A final option may be to complete paid surveys online. While the rewards may be small, they can add up over time.
At the end of the day, it’s up to you to decide what’s best for you. From personal loans to pay advances and Centrelink benefit payments, there will always be pros and cons. Therefore, explore every avenue possible and you might just make the most appropriate financial decision.
Personal loans vs pay on demand: which option is best?
Well, that depends on what you need.
A pay on demand advance might be useful to bridge a small gap. For instance, maybe you need an extra $200 this week before your next pay day rolls around. This could helpful to cover a minor expense, while also allowing you to avoid the commitment, credit checks and costs of a standard cash loan.
By comparison, personal loans might be better to address significant, one-off expenses that have the potential to derail your budget. As a guide, personal loans through Monzi’s lender-finder service may range from $300 to $10,000, meaning you can potentially borrow much more. This may be useful for major car repairs, home maintenance or emergency travel. Just remember that approval is never guaranteed and lenders do charge fees and interest on top of what you borrow.
Is a pay on demand advance the same as buy now pay later?
No, they are different concepts.
Both buy now pay later services and pay advance apps are seen as alternatives to traditional credit (e.g. loans). However, they are not the same. While BNPL allows you to purchase a specific item and pay nothing upfront, a pay advance lets you borrow cash. From there, you are free to spend it on whatever you choose.
Given this, the option that’s best for you might depend on what you’re after. BNPL later is interest-free, meaning there are no additional costs involved. By comparison, pay advance apps will charge a fee when you make your repayment.
In most cases, you can use BNPL to purchase a physical item. For instance, you might need a new pair of shoes. On the other hand, an advance might be more suitable for an expense you hadn’t anticipated (e.g. a last-minute bill).
What are the drawbacks when you access your pay early?
While a pay advance might seem like the perfect alternative to applying for an instant loan, given the relative simplicity and lack of commitment, they are things that you must consider to avoid issues down the line.
Firstly, there are costs involved. While a $5 or $10 might seem minimal, if you apply for many advances across the year, these fees can add up. So, ensure you closely monitor how much you are borrowing and how much you have paid in fees.
In addition to this, accessing a wage advance is still a loan. You are borrowing money that you have not yet received. While you may be confident that you can repay it on your next pay day, consider the potential ramifications for your budget. If $100 or $200 was deducted from your next pay cheque, would you still be able to cover all your regular expenses?
Ultimately, while pay on demand apps can help you smooth over an immediate cash shortfall, remember that you should only apply when it’s absolutely necessary.
Pay advance, wage advance, pay on demand: what’s the difference?
In short, there is no difference.
Each of the terms listed above refer to the same concept. Whether you want to use a pay on demand app or a pay advance app, it will be the exact same thing. You can apply to borrow a portion of your future wages today and then, once you receive your next salary payment, the provider will deduct your advance amount and a fee from your account.
Given that we are in the early stages of pay on demand in Australia, it’s understandable if things are not quite clear. Moreover, similar concepts often have multiple names. Therefore, it’s always important to address any possible confusion.
How long does a pay advance app take to process my application?
If you apply for a wage advance, you might receive an outcome ASAP. So long as you are employed and your income meets the necessary requirements, you might be approved in minutes. From there, it will be transferred straight into your account. Depending on which bank you are with, you might be able to spend your cash within minutes.
Compared to some lenders, banks and financial institutions, pay on demand apps might provide turnaround times that are far quicker. After all, there’s less that goes into it. Just ensure you consider how your budget might be affected by the repayment you must make. Some extra cash might be handy today, but if it would limit your ability to pay for things in the future, it may not be appropriate.
Can I get a pay advance with bad credit?
Pay on demand apps often do not check your credit when you sign up or apply for a pay advance. As a result, your credit history may not come into play. Instead, you’ll simply need to show that you are currently employed and are earning sufficient income to be eligible for an advance.
That said, ensure you read the fine print. Credit checks may not be necessary for all apps, however, they may be required with some providers. Therefore, it’s always best to confirm if this will be the case. While you may get an advance with bad credit, policies may vary.
What do pay advance apps aim to cover?
Pay on demand or pay advance apps aim to fill a gap in the market not covered by buy now pay later services. While BNPL allows you to purchase clothes, appliances and other technology without paying anything upfront, it can’t be used for necessities.
Given this, Aussies commonly use pay advances to address a minor cash shortfall before pay day. For instance, you might have a bill that’s due or need to cover a portion of your rent. By applying for a pay advance and accessing your pay on demand, you can get the money you need and have it repaid by the time you receive your next wage payment.
While that does seem simple and easy, remember that a pay advance is still a form of loan. The costs may not be as high, however, you are borrowing money over a short time horizon. Therefore, only rely on it when absolutely necessary. In other words, a pay advance should be a last resort.
If you are currently experiencing financial hardship, you must understand that there is help available. Through Centrelink, you may be eligible for benefit payments. Moreover, community schemes such as the NILS can provide access to affordable credit to purchase certain necessities. Finally, if you are struggling to pay your bills, utility providers have hardship processes in place and may assist you to implement a payment plan.
Is a salary advance a loan?
Yes, it is.
A pay advance involves borrowing money and repaying it as per the terms outlined in your agreement. Therefore, it is a loan and should be treated as such. While it may just feel like you are getting a portion of your wages early, there are costs involved and you may run into issues if you fail to repay what you owe.
Can Monzi pay me in advance?
Monzi is not a pay advance app or a lender. In fact, we cannot offer you cash at all. Instead, we’re a lender-finder service.
So, when you’re looking for easy cash loans online, we can make it simple. Rather than spending your precious time trying to find a lender, let Monzi do the heavy lifting. All it takes is one application and our automated system might match you with an Aussie lender in just 60 minutes.
Ultimately, at Monzi, we aim to cut out the stress and hassle. If you’re in the midst of an unexpected cash emergency, this can often be a welcome relief. Best of all, Monzi’s lenders operate 100% online and may offer quick cash from $300 to $10,000. As a result, you can apply at any time, from any place.
What can I use a personal loan for?
Aussies borrowers use personal loans to cover a variety of unanticipated expenses. After all, these loans can essentially be spent like cash. As a result, if your budget has been bent out of shape, these loans could save you some hassle.
As a guide, some of the most common reasons for applying with Monzi include:
- Travel loans
- Home repairs and maintenance
- Car registration, servicing or repairs
- Bond loans
- Debt consolidation
- Paying bills
And that’s just the tip of the iceberg. While a pay advance may provide you with cash in a pinch, an online personal loan might help you cover an expense that’s a little bit more significant.
I have bad credit: is that OK?
Bad credit can often feel like a reason to panic. Luckily, allow us to quell your doubts. At Monzi, we understand that your credit history doesn’t always tell the full story. Best of all, the lenders we work with do too.
Given this, if your credit isn’t the best and you’ve been turned away by the bank, you’re welcome to apply. While approval is never guaranteed, we’ll do our best to match you with a lender who might offer the cash loans for bad credit that you require.
With this, while lenders may still assess your credit, your current financial situation will hold weight too. Therefore, if you are earning a consistent income and you are keeping your budget in check, you might be able to access the bad credit cash you need.
How do I apply for a personal loan rather than a pay advance?
You can apply in minutes with Monzi. Before we get to that, however, confirm that you are eligible and check the following boxes:
- Australian citizen or permanent resident.
- At least 18 years of age.
- Can supply a current email address and mobile phone number.
- Have an online bank account, where your income is deposited, with at least three months of transaction history.
No worries? Great!
To apply, all you need to do is:
- Use the loan slider to choose a suitable loan amount and repayment term (where applicable).
- Enter the necessary details and follow the instructions to complete Monzi’s online application form.
- Settle in and let Monzi take over. We’ll now attempt to match you with one of the credit providers within our network.
- Keep your notifications on and your phone close by. We’ll contact you with an outcome once our search concludes. If we match you with a lender, they will reach out to begin the next stage.
Easy, right? While you could apply for a pay advance, in some cases, fast and easy personal loans might be more suitable. If you need to borrow cash amounts from $300 to $10,000, apply today.
Pay on demand, loans and other borrowing: who can I ask for help?
At Monzi, we’re always here to help you. If you have questions, feel free to reach out. Contact us at email@example.com and we’ll do our best to reply ASAP. Just remember that we can only answer questions regarding our lender-finder service and organisation.
For more information regarding borrowing and what you may need to consider, Moneysmart’s guide to personal loans may be a good place to start.
If you are struggling with debt, you can call the National Debt Helpline on 1800 007 007 from Monday to Friday between 9:30am and 4:30pm. From there, you may be put in touch with a financial counsellor who can assist you.
Ultimately, if debt is getting the best of you or you’re unsure whether a pay advance is suitable, seek advice. Do your research online or contact a qualified advisor. Broadening your knowledge or receiving professional advice is never a bad thing. Moreover, it could help you avoid problems down the line.
Need a pay advance? Apply for a personal loan with Monzi
While pay advance apps may be starting a new trend in personal finance, if you need a loan, Monzi can set you on the right path. Apply from $300 to $10,000. With easy applications and fast outcomes, you might receive the cash you need before you know it. So, whether car repairs have got you down or you’ve got a bill to pay, give Monzi a try.
Apply now using the loan slider at the top of the page. Your journey to finding a lender is just a few clicks away.