It can happen to anyone—it’s two days before payday and an unexpected expense comes up. Maybe it’s a bill you forgot about, maybe your car breaks down, or maybe you finally decide to buy that new air conditioner. Whatever the expense, you should know that there are options that save you from adding the debt onto your credit card.
Cash Train is a lender who specialises in short term loans for when something unexpected crops up before payday. Instead of adding to your credit card debt or paying to use a redraw facility, Cash Train offers fast approval of small loans with a pre-determined amount for you to pay back.
Type of loans available
Cash Train offers short term loans under $1,500. The loans they offer are designed to cover expenses that crop up before payday, so they don’t recommend using their service to assist with any long term financial problems or for expenses that exceed $1,500.
- Fast payouts. Cash Train usually pays out approved loans within 3 hours or the next business day.
- Apply online. Cash Train has a simple online application process and can give you an instant online offer subject to verification.
- Know how much you’ll pay. When you sign a contract with Cash Train they’ll set out the amount you’ll pay back so you don’t get stuck with unexpected charges. They also have an online calculator on their website to help you determine how much your loan will be.
Cash Train will not charge you any unexpected fees while you are paying back your loan. When you sign your loan contract with them they will set out the exact payments you will owe and the frequency at which you need to pay them back. This will help you plan the repayments and incorporate the amount into your budget.
Here are the fees you can expect to pay when taking out a loan with Cash Train:
- Establishment fee of $45
- Credit fee of $8
- Interest is charged $1 per $100 borrowed per day plus administration costs. So if you borrow $400 for 20 days you will be charged $80.
- Direct debit fee of $1.40 for every direct debit.
If you have problems making your payments then there may additional fees which may include:
- Reschedule fee of $10. You can only reschedule one loan payment, and this may affect the amount you can borrow from Cash Train in the future. Regardless, it comes with a fee of $10.
- Arrears management fee of $45. This is a one-off fee charged if your account goes into arrears.
- Late payment fee of $38.50. This amount is charged each time a scheduled payment is late or fails.
- Default letter fee of $10. Cash Train will only send a default letter and charge you this fee if they cannot contact you by phone or email.
When you sign a contract with Cash Train they’ll set out the dates of your repayments and the amount you will need to pay on those dates. To make things convenient for you they’ll direct debit your nominated bank account on the dates agreed in your contract so there is no chance of you forgetting your repayments.
When should I apply for a Cash Train loan?
A Cash Train loan is designed to be used for specific purposes. Their service is primarily used by those who need a couple of hundred dollars to pay for an unexpected expense before payday. Some reasons that are common for people applying for Cash Train loans include car repairs, covering bill repayments or to cover expenses for unexpected events or occasions.
When considering whether to get a loan with Cash Train loan you should think about how necessary the expense is. You should also consider your other options. If the necessity of the loan makes the fees and interest you have to pay worth the cost, then this may be an option to consider.
Pros and cons of a Cash Train loan
- Convenience. Cash Train loans are a convenient option for people needing some extra cash. You can apply online and you usually see the loan within a few hours, or one business day at the most.
- Security. The fees and interest charges associated with the loans help you manage your repayments and plan to accommodate the costs of the loan. There is also no chance of you forgetting a repayment as the specified amount is automatically debited out of your account.
- Members area. If you borrow from Cash Train once and then decide to do so again you can take advantage of their members area, which eases the online application process.
- Restrictions. No matter what your income, they cannot grant a loan for people who are self-employed or those using the loan for business purposes.
- Short term solution. Cash Train specialises in short term loans. These should not be used to solve long term financial problems, as these can be more expensive than other forms of finance.
Applying for a Cash Train loan
Before applying for a loan with Cash Train you should make sure you meet their selection criteria. Cash Train uses two main categories of selection criteria; essential criteria which needs to be met in order to apply; and other criteria which will also be considered for individual loan applications.
Essential criteria includes:
- Being 18 years or over.
- Being a New Zealand resident.
- Earning over $1,300 a month.
- Having your income paid directly into your bank account (not in cash).
- Not being self-employed.
Criteria which will be taken into account when applying:
- You will be considered for a loan if you have bad credit history, although you are not guaranteed to be approved. Cash Train focuses on your current financial situation and the likelihood of you making the repayments.
- Contact information needs to be entered correctly when you apply. Things like incorrect phone numbers, inaccurate salary declarations or mismatched bank details may affect your application.
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