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What is a $1,200 payday loan?

A $1,200 payday loan is a high-cost personal loan that will give you a sum of $1,200 to be paid back over a specified period. In general, payday loans are worth small amounts and have short repayment periods. These loans are typically used for unexpected expenses such as medical bills or car repairs or emergency renovations.

What is a $1,200 bad credit payday loan?

A $1,200 bad credit payday loan is a quick loan available even to borrowers with bad credit. Unpaid debt or late payments can result in a bad credit score and make it difficult to borrow money from large banks or traditional lenders. Lenders that offer bad credit payday loans allow those with bad credit scores to apply and be approved for certain loans.

Who offers $1,200 payday loans?

A number of different online lenders offer $1,200 payday loans. These are usually smaller, lesser-known companies. To ensure you get the best payday loan for your needs, it’s best to compare several payday loan lenders.

How do you take out a $1,200 payday loan?

Generally, you take out a $1,200 payday loan by submitting an online application to your chosen lender. The lender will then review the application and either approve or deny your request. Most lenders provide an online form that is quick and easy to understand. Some lenders also allow you to apply at a physical office.

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How long does it take to get a $1,200 payday loan?

Payday loans are designed for those who need money quickly, which is why some lenders allow you to collect your funds immediately in store. Other lenders deposit your loan amount into your chosen bank account, and you may see the money come through the same day as your loan was approved or within the next one or two business days.

What are the pros and cons of $1,200 payday loans?

All loans have positives and negatives. A $1,200 payday loan allows you to access funds quickly and easily and can cover immediate expenses.

However, $1,200 payday loans also have drawbacks. Payday loans tend to have high fees, which means you’ll have to 'buy' the loan for a high price. The terms, or fine print, of payday loans tend to be lender-favourable and may include additional fees and costs. Before taking out a $1,200 payday loan, you should be sure that you can make payments on time, or it could end up pushing you into a cycle of debt.

Case study

Alice needs to borrow $1,200 to pay for emergency car repairs. She chooses a loan term of three months. The lender charges an establishment fee of 20 per cent, or $240. The lender also charges a monthly fee of 4 per cent, or $144. As a result, Alice’s repayments work out to be $226.29 per fortnight and $1,584 in total.

Can you get a $1,200 payday loan if you're on Centrelink?

Yes, borrowers who receive Centrelink benefits can take out a $1,200 payday loan, under certain conditions. Some bad credit payday loans require that Centrelink is not your primary source of income, while other lenders invite anyone to apply.

Can self-employed people get $1,200 payday loans?

Self-employed borrowers can take out a $1,200 payday loan depending on the lender. Some lenders cater to those who are self-employed or own their own business, with some even offering payday loans for self-employed with bad credit.

What are some alternatives to $1,200 payday loans? 

There are a number of alternatives to payday loans, including no-interest loans, Centrelink advances, negotiating with your provider, or low-interest credit cards. If you’re on low income, you may be eligible for the No Interest Loan Scheme, which is generally more affordable than payday loans. Borrowers receiving Centrelink benefits may qualify for advances on their payments. A low-interest credit card may charge a lower rate than most payday loans, making them a reasonable alternative.

If you’re struggling with your debt, financial counselling is available, and the National Debt Hotline may be able to help.

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^Words such as "top", "best", "cheapest" or "lowest" are not a recommendation or rating of products. This page compares a range of products from selected providers and not all products or providers are included in the comparison. There is no such thing as a 'one- size-fits-all' financial product. The best loan, credit card, superannuation account or bank account for you might not be the best choice for someone else. Before selecting any financial product you should read the fine print carefully, including the product disclosure statement, fact sheet or terms and conditions document and obtain professional financial advice on whether a product is right for you and your finances.

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