But there is a process to get there, and the more you know about it the better equipped you will be to avoid delays. 

In this article, we’ll discuss the four stages of the loan application and how you can avoid delays. 

By keeping things moving you can be sure the cash will be in your account as fast as possible. 

4 Steps to Get a Fast Cash Loan 

The application process is completed entirely online, allowing you to complete in minutes. 

From there, the speed of the process depends on your availability to answer any additional questions, and possibly provide additional information. 

A cash loan can usually be fully assessed and funded within hours of submission.

Here is your best case timeline for each stage of the cash loan process:

1. Application: 5 Minutes
2. Verification: Less than one hour (unless more info is required)
3. Assessment: Near instant once verification complete
4. Funding: Same day deposit

Step 1: 100% Online Application

You’ll be asked for some basic personal information, ID, and desired loan amount through the application form. 

Your bank statements also form a key part of the process enabling a rapid assessment.

This is all submitted digitally through your regular netbanking portal that links to the application. 

One of the biggest causes of delays to get your cash loan is inaccurate information being submitted. 

So make sure your contact information is correct and financials accurate for quickest processing. 

Step 2. Verification Stage

The best way to speed up verification is to be contactable after your submission.  

Our team may need to ask some basic questions before sending your application off for assessment. 

This could be just a few seconds of your time to confirm information in some cases. 

Sometimes additional documents are required, or an explanation for certain aspects of your finances. 

At a basic level, the assessors must verify the following: 

• Identity checks
• Income verification
• Bank statement review

The sooner you can provide the extra information the faster you can progress to the loan assessment. 

Step 3. Assessment Stage

Once your information is complete and has been verified as accurate, your application will progress to a full assessment.  

The purpose of this is to ensure that: 

• The loan meets your requirements and objectives. 
• You can comfortably afford the repayments. 

If these are both satisfied then the final decision will be made within the Gusto Cash credit policy. 

Step 4: Approval and Settlement

On approval, a contract will be available to read and sign digitally. 

The funds are then deposited into your nominated bank account immediately. 

When you receive the funds will depend mostly on the processing times for your bank. 

Two common causes of delays are: 

• Bank security holds: Your bank might place a temporary security hold on a first-time incoming transfer from a new lender.
• Weekend and holiday processing delays. 

Frequently Asked Questions

Same Day Funding of Cash Loan

The loan process moves through the four stages very quickly if you are responsive to the team. 

If additional enquiries can be processed without delay then a decision is usually made on the same day, and approvals are funded immediately after. 

So, if you need cash in your account today click below to get the process started. 

Borrow from $2,001 to $5,000 with Gusto Cash.

However, in Australia, payday loans are so heavily regulated that consumers will not encounter the predatory practices that are possible elsewhere. 

They are still more expensive than a regular personal loan. So why would one choose a payday loan over a personal loan? 

The answer depends on the urgency of the need for cash, the borrower’s credit profile, and their intended pay back period. 

In this article, we’ll discuss these reasons in detail and compare each loan product and who it is most suitable for. 

Australian Credit Contract Categories

There are three tiers of credit contracts available in Australia for borrowers that are relevant to a comparison of payday and personal loans. 

Each with their own set of specific rules and consumer protections that place hard limits on cost, eligibility, and the required checks before approving a loan. 

1. A Small Amount Credit Contract (SACC) is short term, high cost, and broadly accepted as a payday loan. 
2. A Medium Amount Credit Contract (MACC) is usually positioned as a cash loan or medium loan. 
3. A Personal Loan is a broader consumer loan category offered by mainstream lenders with larger loan amounts and longer repayment terms.

A SACC loan is the modern equivalent of a payday loan in Australia. 

Whereas a MACC can be repaid over a longer period of time to reduce the pressure on your budget while you get back on top. 

Gusto Cash only offers MACC loans which are lower cost and can have more favourable loan terms than a SACC (Payday Loan). 

Click below to start your application today. 

Payday Loans vs Personal Loans Comparison

Generally speaking, a payday loan serves a specific purpose when there is an urgent need for cash and there is no other alternative. 

It is important that you can afford to repay the loan as quickly as possible so that you can minimise the cost incurred. 

A personal loan is a broader product that can be used for almost any major purchase, and is priced in ways to suit mainstream borrowers. 

Summary Table

1. Speed to Approval

Personal loans have traditionally been much slower to approve and fund. 

But this is changing with a range of modern non-bank lenders offering fast turnarounds and very competitive rates. 

If you go to a bank though you are likely still going to be waiting a while before final approval is given (if at all). 

Whereas a payday loan is designed to be fast and usually funded the same day as the application, if approved. 

This is the main benefit of a short term cash loan and is great for dealing with time sensitive expenses. 

2. Loan Amount

The amount of credit available under each type of loan contract is strictly regulated to the following bandings: 

• SACC: $2,000 or less.
• MACC: $2,001 to $5,000.
• Personal Loan: $5,000 or more.

So if you only want to borrow $1,000 your only option is a payday loan contract. 

For a larger purchase, like a car, you will only be able to fund it with a personal loan (unless it is a very cheap car!). 

3. Cost of Funds

This is where the loan categories really diverge and there are multiple reasons for this, including: 

• Short term loans accumulate less interest and need a higher rate to generate the dollar return for a lender. 
• Lower balances also accumulate less interest/fees. 
• The cost incurred by the lender to write a loan is similar whether the loan is $1,000 or $50,000. 

The cost structures are strictly controlled for a payday loan.

Whereas a personal loan is set more by market forces,but still subject to legal maximum Annual Percentage Rate (48%). 

• Payday loans: 20% upfront establishment fee and a maximum 4% monthly fee based on the borrowed amount.
• Personal loans: Establishment fee set by the lender, and an interest rate also set by the lender (from ~6% up to 30%+).

You will see personal loans advertised at interest rates around the 6% mark, which sounds amazing! 

However, these are often restricted to customers with a very high credit score (800+) and may also need to be a property owner. 

Lower credit scores may get pushed into an interest rate exceeding 20% for an unsecured personal loan. 

Establishment fees will also vary depending on the type of personal loan and can range from $0 up to $1,000. 

4. Loan Term

A payday loan has a minimum loan term of 16 days and up to12 months. 

Given the higher cost nature of this product the shorter the repayment period the better for the borrower. 

A personal loan is typically repaid over a longer timeframe that ranges from three to seven years. 

This allows for much higher loan amounts.

For example, a $100,000 secured car loan requires a longer repayment period so that the installments are affordable. 

5. Credit Profiles and Eligibility

All consumer lending in Australia is subject to strict responsible lending obligations designed to protect consumers from unmanageable debt. 

Lenders must assess your financial situation to ensure ongoing repayments will not cause substantial financial hardship.

This is true for all types of loans, including personal loans, mortgages and car loans. 

However, a SACC loan is subject to a much stricter set of requirements. 

Two points that must be included in the credit assessment prior to the provision of credit are as follows: 

• Protected earnings: SACC repayments cannot exceed 10% of your income.
• Multiple SACC Loans: A borrower is deemed unsuitable if they have had two or more SACC loans in the past 90 days. 

A personal loan or a MACC is not subject to these conditions. 

These rules are designed to provide additional protection to vulnerable borrowers who are more likely to resort to SACC loans, and end up in a risky debt position. 

Personal loans eligibility starts with your credit score which determines how your loan will be priced. 

If you have a strong credit history you should be eligible for a much cheaper rate than someone who has blemishes on their credit report. 

Once you fall below a certain point you will no longer be eligible for mainstream credit products such as a personal loan. 

However, you may still be able to get a payday loan or a MACC in some circumstances if you are recovering from bad credit events. 

6. Impact on Future Credit Eligibility

It is common for lenders to have specific exclusions in their credit policy for those who regularly engaged with payday loans. 

Even sub-prime lenders who specialise in credit impaired consumers may immediately reject a loan application if more than two or three SACCs are evident within a set period of time. 

Other SACC lenders are obligated to reject your application if you are a regular SACC borrower if you hit the regulatory limit. 

So the bottom line is that it is not good for your future credit prospects. 

A personal loan application may lead to a short term hit to your credit score, but that will be the case for most credit products. 

The score will also rebound quickly afterwards in the absence of further applications or any missed payments.

So there are no ongoing considerations for credit eligibility with a personal loan as long as you meet all of your obligations. 

The only change will be your capacity to service future debt will be reduced for as long as you are making payments on your personal loan. 

Who is Best Suited to a Payday Loan or Personal Loan?

The right loan choice is generally determined by the amount you need, your ideal timeframe to repay the loan, and your credit score. 

Payday Loans are Most Suitable For

• Credit impaired borrowers who cannot access mainstream alternatives like a credit card or personal loan. 
• Borrowers who need less than $2,000 and can repay the loan within a shorter timeframe. 
• Small, urgent bills, where there is no hardship program available or you do not qualify.

Personal Loans are Most Suitable For

• Those with a mid to high credit score who require a larger loan.
• Larger purchases or cash needs where repayments can be sustained over years. 
• Can tolerate a longer approval period before the loan is funded. 

A MACC loan can also bridge the gap for those needing between $2,001 and $5,000, and still need an urgent resolution to their cash needs. 

Frequently Asked Questions

Payday Loans as a Last Resort

If you can avoid using an expensive SACC loan then in most cases you will be better off looking elsewhere. 

When you need access to quick cash, and have the means to repay comfortably, then it can be the best solution. 

Gusto Cash offers MACC loans with high limits and longer potential repayment periods. If this is more suitable for your needs then click below to get started.

However, due to a combination of government regulation and digitised loan assessments, lenders will usually examine your bank transaction data. 

This can be a huge benefit to you if your credit score is a bit low, and you are now managing your budget well.

In this article, we’ll discuss what lenders are looking for in your statements and what is considered high risk behaviour. 

Why Bank Statements Can Help Those with Bad Credit

Your credit history goes back five years and it can take a long time to rebuild your credit score. 

So if you have past blemishes, such as a default, they will be visible for a long time. 

Gusto Cash will assess your current financial behaviours rather than penalising you for a mistake that happened many years ago. 

Bank statements are one element of this assessment that provides great insight into how you are managing your money today. 

Your bank statements are constantly evolving and this allows you to evidence positive financial habits in less than 90 days, no matter where you are starting from.

This is a big advantage for those who have fixed their credit problems, need a loan now, but are waiting for their credit score to catch up!

What Lenders are Looking For

Below is a summary of the data points they will look at, and what questions they are trying to answer:

• Income data: How much are you earning? 
• Transaction data: Where is your money going? 
• Serviceability: Is there enough leftover to make the repayments?

Most lenders will require 90 days’ worth of bank statements from your main transaction account. 

This means the account your salary is paid into, and where you do most of your spending. 

If you are using multiple accounts to manage your bills then this could slow down your application, or misrepresent your finances which could lead to a declined application.

However, it is very common for people to utilise more than one bank account.

This shouldn’t derail your application as long as you are transparent and not actively trying to hide things. 

Some common mistakes that will hold up your application include: 

• Transferring a large portion of your money to another account to pay expenses. 
• All spending is done from a joint account. 

Both of these scenarios limit the reliability of the data in your statements.

Income Data

If you are a regular full-time employee, then demonstrating consistent earnings will be easy. 

However, if you are casual or rely on commissions or overtime, then there may be some additional explanation required. 

Providing additional information such as payslips can ensure that your earnings are being calculated correctly. 

Especially if there is a one off problem that has affected your earnings. Such as a period of unpaid leave. 

Transaction Data

Your transaction data says a lot about how much of a credit risk you are. 

In fact, any red flags detected in your expenditure is the quickest way to get declined. 

For example, if you are depositing money into your online betting account multiple times at 3am on a Sunday morning, then this could raise the alarm that this person is a credit risk. 

Or perhaps your last three mortgage or rent repayments have reversed? Huge red flag!! 

There is more to it, of course, but these are easy-to-understand examples from a lender’s point of view. 

A lender will categorise your expenses into the following categories: 

• Basic living expenses – Essentials like your rent, food, and utility bills. 
• Discretionary expenses – Optional costs like eating out or your Netflix subscription. 
• Liabilities – Your repayment obligations to other lenders. 

Now, you may be thinking that you could simply spend from your savings in a different account for 90 days and you could present your expenses as almost nothing… Incorrect! 

As part of the credit legislation, all lenders are required to use living expense benchmarks to check that your expenses are credible. 

If you underdeclare your expenses, then they will be raised anyway to a reasonable household budget level.  

Where you can make a difference is with your discretionary expenses and liabilities. 

The best way to minimise the expenses included in your application is to minimise what you spend on unnecessary stuff in that 90-day window. 

There is less wiggle room with your liabilities unless you have a loan that will be paid out soon. 

You may be better off just waiting until that final payment is made before applying for additional credit if you cannot comfortably afford the repayments today. 

A lender is obligated to include that repayment in your expenses, even if you only have two left to go! 

It’s in the legislation, so you will get no flexibility there. 

Loan Serviceability

The basic formula for calculating your capacity to service the loan is your income minus expenses minus liabilities must equal more than your loan repayment. 

What you won’t see is that most lenders also require an additional buffer in your budget.  

This amount is applied behind the scenes when calculating if you can afford the loan. 

A buffer could be $100, or it could be $400 a month. And you’ll need to demonstrate that you can afford the repayment + the buffer! 

This is done to make sure that you can absorb any unexpected changes in your financial situation and still be able to make your repayments. 

High Risk Spending Patterns

Some transactions can hurt your application no matter how healthy your account balance looks at the end of the week.

One high risk transaction is unlikely to do much damage to your application. Your regular spending patterns are generally more important.  

Some examples of higher risk transaction that may signal financial stress include: 

• Frequent gambling transactions.
• Repeated overdrafts or dishonour fees.
• Regular use of short-term wage advance apps.
• Heavy Buy Now Pay Later spending acting as ongoing commitments.
• Large, unexplained cash deposits used to prop up an empty account.

A combination of these factors can indicate that you are not ready to take on additional debt and you need to get your financial house in order first. 

Frequently Asked Questions

Preparing Your Personal Loan Application

If you have read this article and identified areas where your bank transactions may appear as a negative, then the good news is that you can clean them up in only 90 days or less! 

Any improvement in your financial habits will benefit you over the long term, while also improving your prospects of future credit. 

Having said that, you may be in a better position than you think. 

If you need fast cash then click below to get started and our team will be in touch.

While a wage advance feels like an easy solution to short term cash flow needs, repeated use creates an expensive cycle that may complicate future loan applications. 

If you have the cash flow to break out of this pattern then you should do so ASAP. 

However, sometimes alternative finance is required to consolidate and close your wage advance accounts and get them under control. 

In this article, we’ll discuss the true cost of these services that is often disguised as an affordable flat fee. 

We’ll also look at the best alternatives to advance pay apps in the Australian market. 

The Real Cost of Wage Advance Apps

A wage advance provides money now, but leaves you with a smaller pay packet later. 

Providers frame this a more affordable option than a loan because it is interest free. 

They collect a flat fee (usually 5%), which seems very affordable at first glance. And it is if you only do this once or twice a year. 

But if you pay that fee every fortnight, the habit compounds into an effective annualised cost of over 130%. 

Some services also charge interest on top of the fee, which can run up to 24%.

Where people can get themselves into trouble is the missing cash from your next pay. 

Some of your income goes towards repaying the advance, and if that leaves you with a shortfall to cover weekly expenses it can lead to repeat use. 

This can lead to a debt spiral if not carefully managed. 

 If your budget cannot comfortably absorb a reduced pay cycle, you need a different financial tool.

This is the case for all forms of short term cash lending, not just wage advance services. 

Why Lenders Consider Wage Advances High Risk

Most Salary Advance apps do not perform credit checks which can make access very easy for the borrower. 

This convenience is part of the appeal. 

Regular use of these services is a red flag for lenders as it generally indicates either poor budgeting, or a sign of financial stress. 

Some patterns that may be of concern include: 

• You use a salary advance in frequent pay cycles.
• Your next pay is largely spent before you receive it.
• You advance cash for food, fuel, or utilities.
• You also stack BNPL accounts to cover gaps.

While wage advances bypass your credit file, they are visible on your bank statements. 

Most lenders will automatically decline repeat users. 

Even sub-prime lenders will reject those with more than a couple of uses within a set period of time. 

If you are stuck in this cycle it may be time to explore alternatives to wage advances and break the pattern. 

When to Use Debt Consolidation

While it sounds like an easy solution to get a loan and consolidate all your payments into a single facility, it may be more difficult for those using pay advance services. 

You also do not want to use finance that may place you in a worse financial position. 

However, there are some cases where it makes sense to make a clean break from wage advances, consolidate into a single loan, and work hard to repay as soon as you can. 

Gusto Cash offer debt consolidation loans which can be a viable alternative to repeated wage advances by providing:

• Easier budgeting: Spreading repayments over a longer period can get you into a more sustainable budget position. 
• Fewer fees: One structured repayment plan breaks the cycle of repeat advance costs.
• Cleaner loan history: A regulated credit contract may look better to future lenders than constant wage advance transactions.

Check your eligibility for a consolidation loan below and the team will be in touch. 

Alternatives to Salary Advance Apps

1. Get Serious About Budgeting

The cost of living is making life difficult for many Australians. This is forcing people to have a good, hard, look at where their money is going.

It is one thing to make cuts just to get by, but the unexpected bills can still come along and derail your budget.

This is why it is so important to build a safety net so that you do not need to resort to salary advance services. 

Even $10 a week can build up over time if you remain disciplined. 

If you automate a $10 transfer every payday into a separate bank account it often becomes the norm and you forget about it. 

In the future, when a $150 mechanic bill hits, pay it directly from this cash buffer instead of paying an app fee. 

Then, refill the account over your next few pay cycles.

While this is easier said than done, it is a small step to get you on the right track. 

2. Explore Employer-Integrated Wage Access

Before downloading a salary advance app, check if your workplace offers an employer-integrated Earned Wage Access (EWA) program.

These systems link directly to your payroll, providing clear repayment alignment and significantly lower fees. 

Some employers even subsidise the cost completely. 

To find out quickly, check your HR portal or search your company intranet for:

• Earned wage access
• Salary on demand
• Instapay, Earnd, or Wagestream

Drawing funds early still reduces your next pay. Treat this access as a strict last resort rather than a routine budgeting tool.

3. Hardship Support Alternatives

If borrowing causes financial stress, consider these practical alternatives:

• No Interest Loan Scheme (NILS): Covers essential goods with zero interest or fees (eligibility applies).
• Centrelink Advance Payments: Eligible recipients access early funds, repaid via future benefit deductions.
• Request hardship plans for outstanding bills: You may be able to spread out repayments on your current bills without the need for finance.

4 Steps to Transition Away From Wage Advances

Quitting wage-advance apps is hardest during the first reduced-pay cycle. Automatic deductions can drain your account before you cover essentials. 

If you are genuinely struggling, take back control with this action plan:

1. Ask for a variation: Contact your provider’s hardship team for a payment split or extension.
2. Fund your essentials with cash: Think rent, food, utilities, and transport before anything else.
3. Find that extra $10 and save: Even if you have to start baking your own sourdough bread (which is fun), find those savings where you can. 
4. Seek alternative hardship assistance: Replace a wage advance with a hardship alternative to rebuild a buffer (see hardship options above).

For free assistance, contact the National Debt Helpline for financial counselling. 

Once your cash flow stabilises, you can choose the best alternatives to advance pay apps in Australia.

Frequently Asked Questions

Which Pay Advance Alternative is Best For You?

Wage advances can be useful to solve problems today but shrink your budget tomorrow. 

If you feel stuck you may be able to consolidate into a single loan repayment plan to take the pressure off. 

However, there are free alternatives for those in genuine financial stress that can be accessed with just a few phone calls.

If you would like to explore a consolidation loan then click below to get started.

They are designed to fill a gap in your finances when you have an unexpected bill or large expenses that need to be paid quickly. 

Think urgent car repairs, rental bonds, medical expenses. The type of bill that is time sensitive and relatively low amounts. 

This type of loan is generally higher cost compared to a larger personal loan, but the shorter repayment period largely offsets that.

Which makes it an important tool when there is an urgent need for cash. 

In this article, we will help you understand these two main categories of short term loans, who they are most suited to, and the cost involved. 

Fast Cash Loan Categories 

The two types of quick cash loans summarised below are based on specific legislated categories.

There are strict rules around who can offer these loans, the terms available, and the cost associated with this type of finance. 

While Gusto Cash only offers a MACC loan product, the information below is objective and largely driven by government regulations. 

To check your eligibility for a Gusto Cash Loan, click below. 

What is a Small Amount Credit Contract (SACC)?

A SACC is a regulated short-term cash loan designed for urgent cash needs and a fast payback period.  

Under Australian consumer law, SACCs operate within specific boundaries:

• Loan amount: Capped at a maximum of $2,000.
• Term length: Restricted to between 16 days and one year.
• Price structure: 20% upfront establishment fee and a maximum 4% monthly fee based on the borrowed amount.

While SACCs offer immediate cash, borrowers must carefully manage the costs. 

The recurring 4% monthly charge means your total fees stack up fast over a longer repayment term. 

Additionally, relying on these loans repeatedly to cover regular living costs will trap you in a stressful debt cycle. 

They are best for small, short-lived financial emergencies where you can comfortably repay the balance fast.

What is a Medium Amount Credit Contract (MACC)?

A MACC can provide access to larger cash amounts for significant purchases, or one off expenses, that can be repaid over a slightly longer timeframe. 

They are another highly regulated personal loan designed to offer medium-sized, predictable repayments. 

Under Australian consumer law, the parameters are strictly limited to:

• Amount and term: Borrow between $2,001 and $5,000 for up to two years.
• Price structure: Lenders charge a capped establishment fee ($400) and an annual interest rate (48%).

These loans can be secured or unsecured, with some borrowers using the funds to buy a used car or other vehicle under $5,000 that can be used as security.  

Other common uses for a MACC personal loan include:

• Consolidating scattered small debts.
• Paying rental bonds or moving costs.
• Covering larger vehicle repairs.
• Household repairs and appliance replacement. 

MACCS can be most suitable for borrowers who need $2,000 to $5,000 and want a longer, predictable repayment schedule than is offered by a SACC.

SACC vs MACC: Detailed Comparison

We have compared each loan product based on five categories. 

In most cases, your choice of product will be dictated by legislation rather than preference. 

However, the comparison below will help you understand why so you can determine your objectives clearly before applying for credit. 

Summary Table

1. Loan Amount

Each loan product can only be offered within a specific range for the loan amount. 

$2,000 and below must be a SACC, and over $2,000 a MACC. 

• Loan A: $2,000 SACC
• Loan B: $2,001 MACC

MACCs are capped at $5,000 and cannot be offered for a higher loan amount. 

2. Loan Terms

The range of repayment terms are also restricted for both SACC loans and MACCs. 

Both have a minimum of 16 days, but a variable maximum loan term. 

• Loan A: $2,000 SACC, maximum loan term of 12 months.
• Loan B: $2,001 MACC, maximum loan term of 24 months.

A lender is not obligated to offer these maximum loan terms, but they cannot exceed them. 

In the above scenarios, the MACC loan would have much lower repayments given the longer maximum term. However, the total cost of credit would also increase. 

3. Costs

There are two main elements that make up the cost of these short term loan products; the establishment fee, and the interest cost. 

Regulations dictate strict caps on both, with the terminology used for each contract type also slightly different. 

Establishment Fees

This fee is added to the principal amount paid to you on the day the loan is funded. 

So you will owe more than you receive regardless of the loan type. 

The calculation method varies depending on the type of loan contract: 

• SACC: up to 20% of loan amount 
• MACC: up to $400

You may notice that the MACC becomes much cheaper relative to the loan amount the larger the loan is. 

Compared to a SACC that is a fixed percentage that applies no matter the loan size. 

Ongoing Cost

The ongoing cost of a loan is usually calculated based on an interest rate. 

While this is the case for a MACC loan, a SACC loan has a different pricing structure. 

A SACC lender can charge up to 4% of the loan amount for the duration of the repayment period. 

This fee does not reduce as you repay the loan and stays fixed for every month the loan is open. 

Whereas a MACC has a maximum annual interest rate of 48%. 

While this sounds high, it is calculated on the outstanding balance that reduces quickly over the short repayment period. 

As a result, a SACC loan is almost always more expensive relative to the amount borrowed. 

SACC vs MACC Total Cost Example

We’ll continue with the same two loan examples to demonstrate the difference in the cost structures over the same repayment term (6 months). 

Example A: $2,000 SACC

• Establishment fee: $400 (20% of principal)
• Monthly fees: $480 (4% of $2,000 x 6 months)
• Total repayment: $2,880 (principal plus fees)
• Total cost: $880.00

Example B: $2,001 MACC

• Establishment fee: $400
• Annual interest: 48% p.a. calculated on a reducing balance
• Total repayment: $2,748.12
• Total cost: $748.12

The MACC loan is almost 15% cheaper than the SACC. The difference is largely due to the way the monthly fee is calculated. 

For larger loan balances the cost of a MACC reduces further in relation to the loan amount. 

The same $400 fee would be applied on a $5,000 loan (8% of loan amount) as a $2,001 loan (20% of loan amount). 

Whereas a SACC is a fixed 20% of the loan amount. 

4. Credit Accessibility

All consumer lending in Australia is subject to strict responsible lending obligations designed to protect consumers from unmanageable debt. 

Lenders must assess your financial situation to ensure ongoing repayments will not cause substantial financial hardship.

This is true for all types of loans, including MACCs, mortgages and car loans. 

However, a SACC loan is subject to a much stricter set of requirements. 

Two points that must be included in the credit assessment prior to the provision of credit are as follows: 

• Protected earnings: SACC repayments cannot exceed 10% of your income.
• Multiple SACC Loans: A borrower is deemed unsuitable if they have had two or more SACC loans in the past 90 days. 

A MACC loan is not subject to these conditions. 

These rules are designed to provide additional protection to vulnerable borrowers who are more likely to resort to SACC loans, and end up in a risky debt position. 

5. Impact on Future Credit Applications

It is common for lenders to have specific exclusions in their credit policy for those who regularly engaged in SACC borrowing. 

While not technically a payday loan, it is viewed as such by other lenders and is a high-risk indicator.

Even sub-prime lenders who specialise in credit impaired consumers may immediately reject a loan application if more than two or three SACCs are evident within a set period of time. 

As discussed in the previous section, even other SACC lenders must reject your application if you are a regular SACC borrower if you hit the regulatory limit. 

So the bottom line is that it is not good for your future credit prospects. 

MACC loans do not have any specific regulatory thresholds to consider, and some lenders may be more forgiving than others. 

However, repeatedly using short-term credit can be a signal of cash flow stress and not something a mortgage lender would view favourably, for example. 

Who is Best Suited to a SACC or MACC?

The right loan choice is generally determined by the amount you need, and your ideal timeframe to repay the loan. 

There is limited overlap on these two points which reduces the scope for consumer choice between a MACC and SACC. 

SACCs are Most Suitable For

• Credit impaired borrowers who cannot access mainstream alternatives like a credit card or personal loan. 
• Borrowers who need less than $2,000 and can repay the loan within a shorter timeframe. 
• Small, urgent bills, where there is no hardship program available or you do not qualify. 

MACCs are Most Suitable For

• Credit impaired borrowers who cannot access mainstream alternatives like a credit card or personal loan. 
• Borrowers who need $2,001 to $5,000 and want structured repayments over a longer timeframe.
• Borrowers who are purchasing an asset that could be used as security over the loan to improve the chance of being approved. 

Alternatives Options For Vulnerable Consumers

The regulations around SACCs and MACCs are intended to prevent vulnerable consumers from being stuck in a debt situation they cannot resolve.

But access to credit can also be a critical need for this group.

For anyone experiencing financial hardship, and needs access to credit, they should explore these alternative programs:

• No Interest Loan Scheme (NILS): Zero-interest funding for essential goods.
• Government support: Centrelink advance payment if you receive eligible benefits.
• Hardship plans: Negotiate a payment plan directly with your utility provider. 

Frequently Asked Questions

Is a SACC or MACC Loan Best? 

The cost of a MACC will always be lower in relation to the amount of credit due to the fixed establishment fee and interest rate charged on the outstanding balance. 

There are also fewer restrictions on who can obtain a MACC within the Australian credit regulations. 

You also have the option to repay the loan in a shorter timeframe that is comparable with a SACC. 

However, a larger loan amount is required to qualify and there is no flexibility on this. 

SACC loans can be suitable for those who are within the regulated criteria and are able repay the loan in less than 12 months.

If you are in the market for a MACC loan then click below to check your eligibility with the team at Gusto Cash.

Lenders consider a number of factors outside of just your credit report. 

This benefits those who have hit trouble in the past but have since built a sound track record of managing their household budget.

In this article, we’ll discuss how to improve your loan application even if you have had past defaults. 

What is Bad Credit

Bad credit refers to the risk associated with lending someone money. Higher risk means a greater likelihood that a loan will not be repaid. 

As a result, the cost of a bad credit cash loan is generally higher, than a regular personal loan. 

The maximum loan amount will also be capped at a lower amount. 

There are a number of indicators that a lender will consider to assess when you have bad credit or are considered higher risk. 

Low Credit Score

Your credit score is a reflection of past behaviour associated with your financial history.

This is not limited to borrowing money through products like personal loans, credit cards, or home loans. 

It can also be affected by service-related products such as a mobile phone contract or a utility payment that was overdue for an extended period. 

The most common causes of damage to a credit score can include:

• Missed or late payments on everyday bills.
• Defaults or accounts sent to debt collectors.
• Multiple credit enquiries in a short timeframe.
• Past bankruptcies or Part IX debt agreements.

Your credit score is one of the first eligibility requirements that most lenders consider.

Thin Credit History

It takes time to build a strong credit score.

As a result, those who are young and have not had a loan before, or those who are new to the country, can also be categorised as higher risk. 

This may sound unfair as they have not missed any loan repayments in the past to tarnish their record. 

However, remember that a credit score is a predictor of future risk.

If you have no history to measure, then the uncertainty equals higher risk for the lender. 

Poor Financial Behaviours

The final reason that someone could be assessed as a high credit risk is if they are demonstrating risky financial habits. 

As part of your cash loan application, Gusto Cash will always review your bank statements as part of a responsible lending assessment.

An example of a high risk transaction in your bank statement would be frequent payment reversals. 

Not only does this indicate that you are behind on other payments, but you are also wasting money on bank fees that will eat into your disposable income. 

Positive Risk Factors

If we put your credit score aside, the other significant factor is whether you can comfortably afford the repayments on the loan. 

To determine this, the following items are assessed: 

• Stability and amount of income coming in.
• Consistency of living expenses going out.
• What type of other debt you have. 

The purpose is to assess your ability to repay based on your current situation, including any potential credit you already have access to. 

Think credit cards, afterpay, or any other consumer debt where you have an unutilised balance. 

Poor Credit Loan Categories

Borrowers often group all bad credit loans together whereas Australian law divides these products into three regulated categories.

Each with distinct legal protections and fee structures:

• Small Amount Credit Contracts (SACC): Up to $2,000; 16 days to 12 months.
• Medium Amount Credit Contracts (MACC): $2,001 to $5,000; 16 days to 24 months.
• Larger Personal Loans (Over $5,000): These feature a broader pricing range and demand a stronger credit history.

There are also a range of credit card (or similar) products that could be available to someone with bad credit.

Note, Gusto Cash only offers MACC loans. Click below to kickstart your application.

Cash Loan Approval Checklist

If you need urgent cash then the fastest way to secure a rapid approval is to be fully transparent and complete in the application.

To secure rapid approval, provide:

• Valid ID documents.
• Accurate financial details.
• Bank statements through the online portal.
• Stable income and employment tenure.

Our fully online application can be completed in just a few minutes and all documents submitted digitally to enable fast approvals. 

The Cost of Bad Credit Loans

If you have a low credit score you will pay more to access credit. 

However, the Australian market is heavily regulated and you will not find predatory payday loans in the market as you may have in decades gone by.

In fact, payday loans were outlawed over ten years ago with strict cost caps introduced on cash loan products. 

Most SACC and MACC lenders charge the same interest rate in line with the legislated cap (which is 48% p.a.)

While this sounds very high, for shorter loan terms the interest incurred in dollar terms is actually quite low in comparison to a longer term loan with a lower rate. 

Fee Red Flags

Where some cash lenders may sting you is with late fees, penalty interest, or early repayment penalties. 

So if you are engaging in SACC or MACC borrowing you should always compare the fee structure and not just the interest rate. 

Gusto Cash does not charge any early repayment fees so you can meet your short term cash needs without mandatory costs hanging over your head when things improve. 

Learn more on our costs page. 

Frequently Asked Questions

How to Get a Bad Credit Cash Loan? 

You can get a car loan with bad credit if you can demonstrate other positive financial behaviours that would suggest that you are a better credit risk than your credit file may indicate.

Credit defaults can stay on your report for five years, but you can demonstrate improving behaviours in just a few weeks.

So if you need cash fast for an unexpected bill then start your application today by clicking below.