19Mar2020

Different Loans Represented by Piggy Banks - Cigno Loans

A Comprehensive Guide to Understanding Different Types of Loans

March 19, 2020

There are so many variables to consider when looking at types of loans; it can be quite overwhelming. That’s why we’ve put together this guide on the different types of loans, to help you determine the most appropriate loan for your current needs.

Secured vs. Unsecured Loans

Secured Loan Metaphor - Cigno Loans

When it comes to taking out larger loans, some of them require you to offer an asset as an added measure of security for the lender. So, if you’re unable to pay back the loan amount, the lender can sell the secured asset to make up for some (or all) of the loan’s value. It’s just an added safety for them. This can come in the form of property, a vehicle or a cash deposit.

Many different types of car loans, for example, use the car itself as a security.

The main differences between secured and unsecured loans that you’ll notice will be the loan amount and interest rate. By securing a loan, lenders are more likely to provide a higher loan amount or a lower interest, reducing your total repayment cost.

Fixed Rate vs. Variable Rate

When you pay back most types of loans, you’ll have to pay back the original amount as well as interest. This interest is paid during your scheduled repayments and is dependent on the interest rate. This can either be a fixed or variable rate.

Fixed rates will stay the same over the repayment period. This makes them easier to budget for long term. Variable rates, on the other hand, will change along with market interest rates. Choosing a fixed rate vs. a variable rate is a tricky decision, as interest rates can either climb or decrease over time.

Home Loan vs. Mortgage

Well, there isn’t really a choice between the two. To buy a home, you’ll need both a home loan and a mortgage. A home loan is the amount you borrow from a lender to pay for a new property. But because the amount is so high, the loan requires the borrower to sign a legal agreement to pay it back: a mortgage.

By signing a mortgage, your lender takes the title of the property until you completely pay off the loan. Different types of home loans have different prerequisites like the deposit amount and interest rate.

Personal vs. Business Loans

As an individual, you’re able to take out personal loans to pay for things that come up. A lender will usually want to see your income and credit score – just so they can determine if you can pay it back or not.

Business loans can be a little harder to set up, but they offer bigger incentives. The amount you borrow can be higher and have a lower interest rate – especially if you secure a business asset like a work truck. But if you need a loan for your business, it doesn’t have to be a ‘business’ loan. You can use personal loans for your business too, but not the other way around.

The most common types of personal loans are small loans that offer a fast approval and payment and require minimal documentation. To learn more about small loans, check out our article on Understanding Different Types of Small Loans.

If you’re after a fast cash loan, you can apply for a short-term loan with Cigno today.

19Dec2019

Cheap Activities To Do These Holidays

December 19, 2019

Henry Mabana

cash loans, cash loans australia, cash loans online Cash Loans

Your kids will want to have fun these coming holidays, but the economy might not cooperate. Why don’t you have some fun activities to do that won’t break the bank at the same time?

Here are cheap and fun activities the family will love to do these holidays.

Make cards for Christmas

You can make cards with the kids to send out to relatives during the Christmas holiday.

Pick up items at a local park or the beach like shells, driftwood, or leaves and then glue it on the cards to personalise.

Camp out in your backyard

This won’t cost a thing if you already have a tent. If you don’t, you can just borrow from your friends or neighbours.

This is convenient for the kids as they can go back to their own bed if they don’t want to sleep in the tent.

Have a little campfire for a barbecue or cooking some hotdogs or smores. Let the kids help with the food to get them excited.

Plant a veggie patch

Start the fun with recycling. Find containers around the house that you can paint. These will serve as pots for planting the seeds.

You don’t need to have a garden for this, just make a small indoor nursery.

Plant something that’s fast-growing so kids can see the changes everyday.

Plan a dig or a treasure hunt

Give everyone a plastic spade for digging.

Bury a bunch of toys in the backyard.

Give the kids a treasure map for hidden clues around the house.

Cheap Activities To Do These Holidays

Click To Tweet

Have an adventure with public transport

Take the kids on a train or bus adventure. Most kids find buses and trains lots of fun!

You can go down at some sites along the way, like a local art gallery or museum, a national park, or even a small farm. Your kids will have fun learning about local culture or do a simple bushwalk. Most farmers will be willing to give a short tour of the farm.

Enjoy the sights and you don’t even have to drive.

Movie day

Have a binge watch session by renting kiddie movies and preparing some popcorn.

Set up and lounge on the floor with pillows and doonas.

This is perfect if you don’t want to go out on a rainy day or when days are hotter than the sun. Just Netflix & chill.

Create salt dough ornaments

Bring out everyone’s creativity by making salt dough ornaments like figurines, letters, or animals.

Salt dough sculpting, painting, and threading will help develop fine motor skills.

Host a masquerade party

Have the kids make their own masks out of paper plates, paint, feathers, glitter, and elastic bands. Use costume store beads or macaroni or anything that can be used around the house to accessorise their costume.

To keep the memories alive, be sure to take pictures of these fun activities for scrapbooking.

Cash loans in Australia

If the paycheck is still to come or you’re a stay-at-home mum, you can get quick cash loans or loans for unemployment on the same day.

It’s quick and easy and the online application is available 24/7.

You can use the funds for the expenses for these cheap holiday activities.

Apply now!

7Dec2019

How Does a Cash Advance Work?

December 7, 2019

Dean Olave

Cash Loans, Payday Loans

Even in today’s almost-cashless economy, there are still situations where you might find you need “real” money. From strolling through market stalls to picking up some furniture from a local on Gumtree, there are times when physical cash creeps its way back into circulation.

But what can you do when you typically tap or click “BUY NOW” for every purchase?

Well, taking out a cash advance with your credit card might seem like the obvious answer. Join us as we explain how to get a cash advance and explore whether it’s a viable solution for getting quick cash.

How does a cash advance work with a credit card?

You can think of a cash advance as using your credit card to buy cash instead of items. Just like any product you purchase on your credit card, the cash you withdraw will be placed onto your credit line to be repaid – and it’ll continuously accrue interest until you pay it all back.

How to Get a Cash Advance

Getting a Cash Advance at ATM

Does your credit card have a PIN? If so, you can likely get a cash advance from an ATM.

If not, head to a bank that accepts your type of credit card. Make sure to bring photo ID.

The Downsides of Cash Advances

A credit card cash advance is certainly an easy way to get money quickly, but it comes at a price.

To begin with, the ATM or bank you use to get your cash advance will likely charge you a transaction fee. Then you have the cash advance fee charged by the credit card company itself (either a flat fee or a percentage of the cash amount).

It’s also worth noting that the interest on cash advances is often significantly higher than the interest charged on actual purchases. Plus, you’ll likely begin accruing interest on your cash advance immediately (no grace period).

Alternatives to Cash Advances

Breaking Piggy Bank

As you may have guessed already, a cash advance is rarely the ideal path to getting money.

Instead, you might want to consider:

Overdrawing on your savings. Sure, you’ll cop a fee, but at least you won’t get slammed by interest.
Borrowing from a family member or friend. While not always possible and potentially a little embarrassing, this option is worth taking if it’s available to you.
Breaking open the piggy bank. If it’s literally a “need cash but only got plastic” situation, it might be best to dip into that piggy bank that’s been collecting dust on your kitchen counter.
Asking for an advance at work. If you can stomach the awkward conversation with your boss, you could potentially save hundreds in fees and interest.
Taking out a personal loan. A short-term cash loan may work out better than a cash advance. And whereas most credit cards will cut you off at a couple of hundred dollars, Cigno can help you borrow up to $1,000. You can also apply online from the comfort of your home or while out and about – no need to trek down to the bank or search for your nearest ATM.

For more information about how a small cash loan compares to a credit card cash advance, contact our team of short-term financial specialists.

25Oct2019

What Is A Fast Cash Loan?

October 25, 2019

Henry Mabana

fast cash loans, fast cash loans australia, fast cash loans online Cash Loans

Once in awhile you need to catch up on your expenses, however, you don’t have an emergency fund. You might want to look into fast cash loans.

What is a fast cash loan?

A fast cash loan is essentially a cash advance. Based on your lender, your income, and your credit history — this type of loan differs.

Most credits being offered range from $100 to $2,000, sometimes it can reach up to $5,000. Expect a limited loan amount if you’re a first time borrower.

The Australian government is in charge of monitoring the fees and charges on this type of loan. You’ll be charged a 20% establishment fee and a 4% monthly fee for a $2,000 loan amount. Anything more than $2,000 can charge up to 48%.

For assessment, you have to submit the requirements and documentation, including your latest 3-month bank statement. Then, there’s the verdict!

Expect a short turnaround time in the whole fast cash loan application process as it’s mostly done online. Usually, the cash is credited directly into your bank account once you’re approved.

Fast cash loans in Australia

Fast cash loans in Australia can give you funds you need with a lesser repayment term. Included are establishment fee, monthly fee, and other charges depending on the agreed loan structure.

Cigno offers fast cash loan products that’s suitable for you. Repayments can be made in step with your payday cycle. Options are weekly or fortnightly, depending on your income. The calculated repayment amount is matched with your capacity to repay the loan.

It’s Cigno’s priority to make your repayments painless, easy, and predictable.

Apply now!