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What is a $1,500 payday loan?

A $1,500 payday loan is a high-cost, short-term loan that allows you to borrow $1,500. Payday loans can be used for a range of expenses, such as utility bills, medical costs or temporary cash shortfalls. Although payday loans come in a wide range of amounts and repayment periods, they are generally for small amounts and are paid back over a short amount of time.

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What is a $1,500 bad credit payday loan?

A $1,500 bad credit payday loan is a payday loan that is available even to borrowers with bad credit. A bad credit score can be the result of unpaid debts or late payments, and can make it difficult to be approved for a loan through traditional channels.

Bad credit payday loans are designed for people with bad credit scores who have been turned down by other lenders. Some lenders may even offer payday loans for bad credit instant approval, which will tell borrowers immediately whether they have been approved for a $1,500 payday loan.

7 reasons people use payday loans

  1. Food
  2. Rent
  3. Electricity bills
  4. Car repairs
  5. Medical emergencies
  6. Christmas gifts
  7. Mortgage repayments

Who offers $1,500 payday loans?

A huge range of online lenders offer $1,500 payday loans. It’s helpful to compare payday loan lenders to find one that suits your financial situation.

How do you take out a $1,500 payday loan?

Most payday loan lenders allow borrowers to apply for a $1,500 payday loan through an online application. The application is then reviewed and either approved or denied based on a number of factors such as credit scores and income.

How long does it take to get a $1,500 payday loan?

In general, $1,500 payday loans are designed for people who need cash fast, which is why lenders work to provide your funds as soon as possible. Some payday lenders allow you to pick up your loan amount immediately in store, while others deposit the amount into your bank account the same day or the day after you apply.

What are the pros and cons of $1,500 payday loans?

Like all borrowing options, payday loans have both benefits and drawbacks. Payday loans allow you quick access to money you need, and it’s often easy to apply and get approved.

However, payday loans are a high-cost borrowing option. Fees are often high, which means borrowers end up paying much more than the original loan amount. The fine print of a $1,500 payday loans is also generally lender-favourable. For example, high fees might for non-payment, which might result in a troublesome cycle of debt for the borrower.

Can you get a $1,500 payday loan if you're on Centrelink?

Yes, people who receive Centrelink benefits can be approved for a $1,500 payday loan. However, the approval of any payday loan is always dependent on the lender. In some cases, Centrelink cannot be your primary source of income.

Some lenders may offer payday loans for bad credit on Centrelink, which would allow borrowers who receive Centrelink benefits and have bad credit to take out a $1,500 payday loan.

Case study: Jessica faces the fine print

A pipe bursts in Jessica’s apartment, causing damage to many of her belongings, including her laptop that she needs to run her business. To buy a new laptop, Jessica decides to take out a $1,500 payday loan. After her application is approved, she begins making repayments, but is a few days late making one of her payments. Jessica’s payday loan charges $7 each day a payment is late – something she had missed in the fine print. Because her payment was five days late, Jessica paid $35 more than she would have had to if she paid on time.

Can self-employed people get $1,500 payday loans?

Yes, self-employed borrowers can get a $1,500 payday loan, under certain conditions. Some lenders will not consider self-employed applicants, while others welcome all to apply and may even offer payday loans for self-employed people with bad credit. It’s best to check the eligibility criteria for any lender before applying for a $1,500 payday loan.

What are some alternatives to $1,500 payday loans? 

Alternatives to $1,500 payday loans include Centrelink advance payments, no-interest loans, negotiating with your utility provider or signing up for a credit card – but the suitability of these alternatives will depend on your specific situation.

If you’re eligible for Centrelink benefits, you may qualify for advance payment on your benefits to pay for essential expenses. Those with low income may be eligible for the No Interest Loan Scheme. If you’re behind on utility payments, talk to your provider to see if they offer payment plans that will help you better manage your debt. Signing up for a low-interest credit card may also help you cover necessary costs at a lower price than with payday loans.

Because of their high cost, $1,500 payday loans should only be used as a last resort. If you’re struggling with existing debt, financial counselling and the National Debt Hotline may be able to help.