ClearCash is an online lender based in Sydney that specialises in line of credit loans of up to $8,000, allowing borrowers to access funds on an ongoing basis instead of taking out a one-off small loan.
How does ClearCash work?
Rather than standard samll loans, ClearCash offers continuing credit contracts, which it refers to as Smart Loans. Instead of receiving a one-off lump sum, borrowers are approved for a line of credit, ranging from $500 to $8,000 for new customers.
With a Smart Loan, you can draw down funds as needed up to your approved credit limit, repay what you owe and then redraw available credit again as you pay the balance down. Repayments are ongoing and based on your credit limit and chosen payment frequency, rather than a fixed loan term.
Borrowers can choose to repay weekly, fortnightly or monthly, and there are no fees for making early repayments. If your balance is paid off in full, no ongoing fees apply, meaning you can keep the account open and reuse it later if you need access to funds again.
The ClearCash application is completed entirely online. Applicants are asked to provide:
- Personal and contact details
- Internet banking details
- Two forms of ID (such as a driver’s licence, Medicare card or passport)
- Bank account details for deposits
- Proof of regular income
ClearCash does perform credit checks, but focuses more on your current financial situation and ability to repay, rather than your credit score alone. This means you may still be eligible if you:
- Receive Centrelink or other government benefits
- Have had a default on your credit file
- Have been bankrupt in the past
Decisions are often provided within seconds, and if approved, funds may be deposited within the hour, or within minutes via Osko, depending on your bank – including outside business hours and on public holidays.
What will the cost of a small loan through ClearCash be?
Accessing cash through ClearCash comes with one primary cost: interest. ClearCash charges 47.8% p.a. interest, which is applied to any outstanding balance for as long as you owe money.
For example, if you withdrew $5,000 and repaid it over six months, the total cost would be approximately $5,718, assuming no additional redraws or missed repayments.
Fees to be aware of
ClearCash does not charge standard ongoing fees, such as service fees or early repayment fees.
However, some charges may apply in certain situations:
- Direct debit reversal fee: $0.55 if a payment fails and you don’t contact ClearCash beforehand.
- Arrears fee: $1 per day if your account is overdue by more than 14 days, capped at $100 per rolling 12-month period.
As with any high-interest, continuing credit product, costs can add up if balances are carried for longer periods, so it’s important to understand how interest is applied and how repayments are calculated before accessing funds.
Is ClearCash legit?
ClearCash is a legitimate lender operating under the Credit Corp Group umbrella, a large Australian credit management and lending group that owns multiple financial brands.
That said, ClearCash has a limited online footprint, and many available reviews are largely negative, mentioning issues such as poor communication, slow service and customer support concerns. It’s also worth noting that many of these reviews are several years old, which may not fully reflect the current experience.
As with any line of credit or continuing loan product, it’s important to understand the ongoing nature of repayments, fees and redraw conditions before applying, and to consider whether a revolving credit facility suits your needs.
What alternatives to ClearCash are there?
ClearCash isn’t the only provider offering small line of credit loans. For example, its sister brand, Wallet Wizard, provides a very similar product with comparable features, including redraws as you repay and interest charged on outstanding balances.
Alternatively, there are several other ways to access small amounts of money, depending on your needs and circumstances:
Standard small loans: these are loans up to $5,000 paid out as a lump sum and repaid over a fixed term. Applying through a broker like Savvy can allow you to compare options from multiple Australian lenders to find the best option for your circumstances. We also offer personal loans for sums above this amount.
Pay advance loans: pay advance loans let you access part of your upcoming wages early. The amount borrowed is deducted from your next paycheque, which can suit short-term cash needs if you’re confident you can cover the reduced take-home pay.
No Interest Loans (NILs): offered through Good Shepherd and partner organisations, these loans provide up to $5,000 for essential expenses such as car repairs, medical costs, rental bonds or purchasing a car. There’s no interest or fees, but funds must be used for approved purposes and eligibility criteria apply.
Centrelink Advance Payment: if you receive Centrelink payments, you may be eligible for a Centrelink advance, which allows you to receive part of your future payments upfront as a lump sum, which is then repaid through regular deductions from your Centrelink payments.