Are payday loans bad?

Not all payday loans are bad. In the same way that you may know someone who had a terrible experience with a travel agent, this does not mean that all travel agents are bad. There can be no denying that payday loans have had a bad reputation and, sometimes, this can come from the hype around bad experiences from bad lenders. This hype can sometimes be generated by the media and used to sell stories. 

How do you know if a lender is bad? Good question. A reputable lender will comply with lending regulations. For example, at Nimble we ensure we are compliant and up to date with lending requirements in Australia. A good lender is also fully transparent about their fees and will have a Fee Statement to help you better understand your loan terms. 

A good payday lender will have reviews of their customers’ experiences so that you can better understand how other people found the service. For example, Nimble is well-reviewed on and here you’ll see lots of our customers talking about their excellent customer service experience and how they felt their loan was transparent. You should look for this information when you're looking for a lender as they will inform you of just how “good” or “bad” their payday loan offering is. 

When you look at the truth of what a payday loan, it’s quite simple - it’s just another type of loan, and sometimes we call this a payday advance, salary loan, or small-dollar loan. Basically, it's a small, short term unsecured loan. One of the reasons that people have named this type of loan “payday” could be because of this historical type of loans relying heavily on previous payroll or employment records. When we remove the general fear associated with the term, it’s just another word for a cash loan. People use these loans when they simply haven’t managed to make their budget management work that month and know they need a little bit of help. 

The information on this website is general in nature and does not take into account your objectives, financial situation or needs. Terms, conditions, fees and charges apply, and are subject to change. Applications are subject to Nimble’s credit approval criteria. Redraw not available.

For our Small Personal Loans of $2,000 or less, an APR (Annual Percentage Rate) doesn't apply. These loans are fee-based only, and so they don't have an APR. The establishment fee is 20% of the amount borrowed and the monthly fee is 4% of the amount borrowed.

For our Medium Personal Loans between $2,050 and $5,000, the Annual Percentage Rate (APR) is 47.6158% (Comparison rate 65.6597% p.a.) and there is a $400 Establishment Fee. For our Medium Loans between $5,050 and $10,000, the Annual Percentage Rate (APR) is 47.6158% (Comparison rate 47.6158%) and there is no Establishment Fee. For our Medium Loans between $10,500 and $25,000, the Annual Percentage Rate (APR) is 29.99% (Comparison rate 29.99%) and there is no Establishment Fee.

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