Sometimes, your payslip just can’t come soon enough. Perhaps you want to take advantage of a limited-time shopping offer but don’t quite have the funds in your account to cover it now. It might be more serious, with a costly bill rearing its ugly head at the worst time. Whatever the reason, it’s important to know that you have options when it comes to accessing extra cash before payday.
How to access your pay early
There are two main options for accessing your pay early in Australia: using a pay advance service or applying for a small cash loan. Here’s how each of them works:
Pay advance service
A pay advance or wage advance service allows you to receive a portion of your next payslip early. They can do this by allowing you to borrow against that payslip up to a certain amount (usually 25% with a cap of up to $2,000 to $3,000), which can be advanced to you now, and then deducting the advanced sum from your payslip when it hits your account.
One of the benefits of this type of finance is the speed at which you can access the funds. Depending on the provider, you could sign up for an account in a matter of minutes and have the advanced cash available to you within 60 seconds.
However, it’s worth considering that the money you’re accessing now won’t be paid to you by the time your next payslip rolls around. As a result, it’s easy to be caught in a constant cycle of accessing pay early. You’ll also need to pay a fee to use this service, which adds up the more cash you borrow.
Small cash loans
On the other hand, a small cash loan is a separate arrangement that’s independent of your actual payslip. You can borrow up to $5,000 and take up to two years to repay your debt in set instalments with fees and interest (depending on the size of your loan). Savvy is partnered with a panel of lenders offering these quick and simple loans.
The two main bonuses here are that you can potentially access a larger amount of money and spread out your repayments over a longer period, making it more manageable than simply having the whole sum deducted from your payslip. They can also be turned around very quickly, often within the same day.
What you’ll need to think about before applying for your cash loan is its cost. The fees charged on loans up to $2,000, and fees and interest on loans between $2,001 and $5,000, are steep, so you should always know how much you’re really paying for the amount you’re borrowing. All fees and interest are capped, so it’s easy to work out the cost of your loan before you borrow.
How much does it cost to access my pay early?
Once again, this depends on which of the above options you choose. You can see the cost breakdown of each finance type here:
Pay advance service
Most wage advance services charge a single percentage-based flat fee for borrowing money. This is usually set at 5%, which is charged by Beforepay, MyPayFast, MyPayNow and pretty much every service provider. This means, for example, that a $1,000 advance would come with a $50 fee, regardless of how long it is before your next payslip.
On top of this, though, providers like Wagetap and Wagepay also charge interest on the loan of up to 24.00% p.a. With the added interest cost taken into account, the same $1,000 advance repaid in seven days would come with a $50 fee and $4.60 in interest. Extending the term to 14 days means your interest would increase to $9.21.
Small cash loans
The cost structure of your loan depends on how much you choose to borrow. Here’s how that shakes out:
- Loans up to $2,000: up to 20% establishment fee, up to 4% monthly fee
- Loans between $2,001 and $5,000: up to $400 establishment fee, up to 48.00% p.a.
A $1,000 cash loan repaid fortnightly over three months would have repayments of $188.57, with a $200 establishment fee and three lots of $40 monthly fees. In contrast, though, a $2,500 loan repaid fortnightly over six months would have $252.63 instalments, a $400 establishment fee and $384.23 in interest.
Because these fees are fixed and capped, your loan will likely cost the same with a wide range of lenders, such as Cash Bridge, Cash Direct, Fair Go Finance, Fundo and more.
How to apply for a loan to access your pay early through Savvy
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Fill out our form
Tell us about yourself, the loan you’re after and what you need it for.
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Get instant conditional approval
If you meet the requirements of one of our lenders, you can proceed straight away.
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Have your application assessed
From there, your lender will assess your application formally.
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Receive your cash
If they’re happy with it, you can be formally approved and have the cash sent to your account.
Why apply for a small loan with Savvy?
Can I access my Centrelink pay early?
Centrelink offers advance payments for eligible benefits recipients, where the amount advanced is deducted from future payments. You can see what payments qualify for an advance and how much you may be able to borrow in the table below:
| Centrelink payment | How much you can advance | How often you can receive advance | Conditions of advance |
|---|---|---|---|
| Family Tax Benefit Part A | Regular advance of 3.75% of the standard rate for one child under 13 One-off advance of up to 7.5% of your annual rate |
Regular advance: paid every 26 weeks until eligibility ceases or you request a stop One-off advance: one at a time |
Advances cannot exceed a total of $1,381.13 Any outstanding advance debt will be deducted from your maximum advance Different amounts apply for blended families |
| Age Pension, Disability Support Pension (DSP) or Carer Payment | Between $559.50 and $1,678.50 for singles Between $421.75 and $1,265.25 as part of a couple |
One advance at the maximum, one or two at smaller amounts or three at the minimum within a six-month period | Must have at least the lowest amount available to qualify for an advance |
| ABSTUDY, Austudy, JobSeeker Payment, Parenting Payment or Youth Allowance for job seekers and students | Between $250 and $500 | Either in one or two instalments | N/A |
| Farm Household Allowance | Between $250 and $500 | Paid in one instalment | N/A |
| Special Employment Advance | Between $50 and $500 | Paid in one instalment | Available to those receiving Austudy, Carer Payment, DSP, JobSeeker Payment, Parenting Payment (single) or Youth Allowance payments for at least three months This payment is for those who have got a new job, which is for at least six weeks and reduces your income support by 50% or more, and don’t have enough money to pay for work essentials. Also applies if you and your partner have both worked, have your income support reduced by 50% or more and neither has been paid by the employer yet or will be in the next two days |
| Mobility Allowance Advance | 13 payments’ worth of Mobility Allowance | Once every 12 months | Allowance payments will cease until the advance is repaid, which may be up to six months |
On top of the conditions listed above, you won’t be eligible for a Centrelink cash advance if the following applies:
- You’ve taken out an advance in the last 12 months on your ABSTUDY Living Allowance, Austudy, Farm Household Allowance, Mobility Allowance, JobSeeker Payment, Parenting Payment (unless you became single in the last 28 days) or Youth Allowance as a job seeker or student
- You’re still repaying an advance you received more than 12 months ago
- You currently owe a debt to the Australian Government
- You can’t afford to repay the advance in full in the next six months
- You have less than the lowest amount available for your benefit
- You’re outside Australia at the time of the advance request