Finding a loan that you can qualify for when you’re a Centrelink recipient is relatively hard enough, though not impossible. But, you should also know that you could improve your chances of securing a loan if you know the particular Centrelink benefit types that lenders use when determining your eligibility. For example, lenders don’t usually accept Austudy benefit as income so if this is your Centrelink benefit is for, you’ll be hard pressed to get a loan.
Below, rapidloans.com.au compiled a summary of Centrelink payments and whether they are accepted as income by lenders or not when determining eligibility for cash loans for Centrelink recipients:
- Carer Allowance – This is for those who care for dependents and is considered income by most lenders.
- Age Pension – This is for retired individuals, and majority of payday lenders consider this income. Banks however will usually require that you have other income sources.
- Austudy – This benefit is for Australian apprentices and fulltime students 25 years old and older. Lenders don’t normally consider this as income.
- Youth Allowance – This is for younger individuals between the ages of 16 and 24 who are going through an apprenticeship, studying part or fulltime, training, disabled or sick, or currently seeking employment. Only some payday lenders will consider this as income.
- Disability Pension – This is for individuals who’ve been diagnosed with a physical, psychiatric, or developmental condition that prevents them from being employed. This is generally accepted as income, not all lenders consider it as income when applying for cash loans for Centrelink recipients.
- Parenting and Family Tax – This is monetary support to aid parents in raising their children. Lenders normally accept Family Tax Benefits A and B as income, although having additional income sources will significantly help. Lenders will likewise factor in the age/s of your kids/s.
- Child Support – This is financial aid to help ease the expenses related to childrearing. Some lenders will consider income if you can provide some required documentation.
- Foster Care Allowance – This is for parents who raise foster children. Some lenders can consider this as income, but additional sources of income will greatly help.
- Overseas Pension – There are lenders who will consider overseas pension as income depending on what country the pension is coming from. You will however have to submit evidence that your pension is being consistently delivered.
Now that you know if your Centrelink benefits can be considered income or not, it will be easier for you to find loans available for your particular case.