The term “cheque-cashing” refers to the practice of converting a check into cash.
Checks can be cashed at a check cashing service immediately. Cash in hand or funds deposited into a bank account both qualify. You can cash cheques much more quickly than depositing and clearing them into a bank account.
Keep reading as we break down the steps to cash a check in Australia and where to go if you get a quick personal loan instead.
How to Cash a Cheque in Australia?
While cheques may decline in recent years, many people and businesses still prefer to use them.
Many people have bank accounts where they can deposit their checks, but it could take up to a week before the money is available for withdrawal. Alternatively, you can get the check cashed if you require the money quickly or need more time.
For the same reason, being able to cash a check becomes more important if you don’t have a bank account and have few other options for using the money.
Some viable solutions are listed below.
Stop By a Retailer
Check many significant retailers offer cashing services. Going to a bigger store has advantages since they’re more likely to have money. Those who facilitate this will charge a nominal fee based on a portion of the check you want to be cashed.
Bring it to the bank.
You can cash a check at the issuing bank even if you don’t have an account there. If you have a bank-issued cheque out to you, that bank may cash it for you. However, they will demand payment from you and may even use this to lure you into creating a bank account.
Take it to a Payday Lender
Nowadays, you can cash checks at payday loan stores, which you can find in most major cities. Borrowing money from a payday lender or cashing a check at one store can add high costs. The fee they assess to cash a check is typically much higher than what you’d pay at a bank or a major retailer.
Get a Prepaid Debit Card
It’s easy to open a prepaid debit card acct if you need to cash a check but need a bank account. Because of the lack of stringency associated with opening such accounts, those with less-than-perfect credit can get one. This expedites the process and allows you to receive the funds from the cheque in your bank account more quickly.
Types of Cheques that you can use
There are a few different kinds of cheques that can be used in Australia, including:
- Standard cheques: This is the most typical cheque in Australia
- Anyone going on a trip and needing a simple way to transport cash can benefit significantly from using traveller’s cheques.
- Certified cheques: A bank will only honour a certified check if sufficient funds are available
Some service providers may accept the following checks; however, others may have alternative requirements:
- Bank cheques
- Business cheques
- Company cheques
- Benefit cheques
- Government cheques
- Account payee cheques
- Insurance cheques
- Gaming and lottery cheques
Australian Lenders Who Cash Cheques
Some people can only cash cheques in a bank. While some Australian lenders cash checks, shopping around for the best interest rate and costs is essential. You can get a loan from various sources, including banks, credit unions, and online lenders.
The following financial institutions accept personal checks and have branch locations:
- Money Plus
- OK Money
- Cash Stop
- Cash Converters
Comparing Australian Cheque Cashing Solutions?
In Australia, there are a few points to keep in mind when selecting a check cashing service:
- You should check to see if the service has reasonable prices.
- You need to make sure the service is practical and straightforward to employ.
- Ensure the service you choose can be relied upon before committing any money.
To evaluate various Australian check-cashing services, we will be looking at the following:
- Step 1: You can begin by comparing their websites and comparing prices.
- Step 2: Find out what other consumers say about the service by reading online reviews.
- Step 3: Contact the relevant service immediately if you have any queries.
- Step 4: If you take the time to compare your options, you might select a check cashing service that works well for you.
Check Cashing in Australia: Perks and Downsides
Pros:
- You can get cash quickly during an emergency
- You don’t need a bank account. You can cash paychecks without a bank account.
- Transparent fees.
Cons:
- Lenders may charge a percentage or a fixed amount.
- Limitations are another issue. Some companies refuse certain cheques or limit withdrawals.
Cheque Cashing Alternatives
A quick personal loan is a viable option for cheque-cashing when you need access to cash quickly. However, payday loans usually have higher interest rates and shorter repayment periods before you apply.
Below are some of the top companies offering personal loans in Australia today.
1. Nimble Personal Loans
Personal loans from Nimble are available for up to $25,000, making them ideal for unexpected medical costs, home improvements, car repairs, and more. Although the interest rates are higher, the organisation provides exceptionally accommodating loan terms (anything from Two to 48 months). Nimble is known for its quick processing times (up to 60 minutes) and easy-to-use application.
Specs
- Cash from $2,050 to $25,000
- Terms of 62 days to 48 months
- Interest rate starting from 29.99%
- Repay debt in four years
Tip: To qualify for a loan, you must have steady employment.
2. Jacaranda Finance Personal Loans
Every Australian resident over 18 can apply for a personal loan from Jacaranda Finance. You can get your cash in an hour after completing the online application. The loan can be repaid weekly, biweekly, or monthly instalments, with loan periods extending up to 24 months. The interest rate is based on your financial situation.
Specs
- Cash from $2,100 to $15,000
- Terms of 9–24 months
- Interest rates ranging from 18.95% p.a. To 27% p.a
- Payouts in less than an hour after application
3. Credit 24
Australians have quick cash through various personal loan sizes from Credit 24. Borrowers who need only a few hundred dollars can acquire a loan for that amount with no interest charged, while those who need more will have to pay interest on their loan but not have to pay any fees each month or set it up. If your loan is authorised, the funds will be transferred to you the next business day.
Specs
- Loans from $500 to $10,000
- Terms of six to 36 months
- Interest rate from 24% to 48% p.a
- Loans of up to $500 don’t have interest
Tip: You must earn over $600 monthly and have a reasonable credit history to apply.
4. Citi Bank
This lender, a division of the global financial services firm Citigroup, offers Australians needing urgent cash loans of up to $75,000. Their online application process is quick (less than ten minutes) and convenient. Furthermore, repayment is also easy, with fixed monthly payments spread across the loan’s five-year term at low, variable interest.
Specs
- Loans from $2,000 to $75,000
- Terms from three to five years
- Interest rates vary from 8.90% p.a.
- Citi lender is popular in the Australian market.
Tip: The Citi Bank account opening charge is $99.
5. Fair Go Finance
This firm is one of Australia’s largest online lending institutions, and they focus on providing personal loans for amounts between $2,000 and $10,000. The application takes less than Six minutes to complete and receives a response within 24 hours. This lender has attractive interest rates (as lower as 9.9%, based on your credit score and loan amount).
Specs
- Loans from $300 to $10,000
- Terms from one to 36 months
- Interest rate range from 9.9%
- Offers the best interest rates
Bottom Line
Cashing a check in Australia can be done in several different ways. You can cash your check at any financial institution, including banks, post offices, and credit unions. You can get your money quickly by depositing the check into an account at the same bank from which it was issued.
FAQs:
1. How secure are check-cashing businesses?
Using a check-cashing service is risk-free; you can rest assured. They make it possible to cash checks without visiting a financial institution. There may be a small price for using these facilities, but it is usually relatively low. The most important fact to remember about using a check cashing service is that you usually must present some identification.
2. Can I cash a foreign check in Australia?
You can get Australian dollars to exchange for a foreign check at any bank in Australia. Sometimes, the bank may impose a fee for using this feature. There may be additional fees if you use the cheque to make a payment or withdraw money from an ATM.