CommBank AdvancePay review: costs and features

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Do you really need a loan today? *

Borrowing small amounts of money can be expensive, and borrowing may not solve your money problems.

Check your options before borrowing:

  • For information on other options for managing bills and debt, call 1800007007 from anywhere in Australia to speak with a free, independent financial advisor.
  • Talk to your electricity, gas, phone, or water provider to see if you can come up with a payment plan.
  • If you receive government benefits, ask if you can receive an advance from Centrelink: Phone: 13 17 94

The government’s MoneySmart website shows you how small loans work and suggests other options that can help you.

* This statement is required by the Australian government under the National Consumer Credit Protection Act 2009.

Main points to consider with AdvancePay

AdvancePay is a “pay-on-demand” service of the Commonwealth Bank. This service allows CommBank customers to access up to $ 750 of their paycheck before payday through the CommBank Netbank app, without the need to involve their employer.

AdvancePay works like a temporary overdraft. If you have a CommBank account that you enter your salary into regularly, you can simply apply online through the app and you will receive a decision within one business day. Approved CommBank customers will be granted access to the service on a limited basis (ie, not on all payment cycles). This offers borrowers protection against dependence on short-term debt.

different to payday loans, which generally charge a setup fee of 20% of the loan amount and 4% in monthly fees, AdvancePay is a potentially lower cost solution for accessing a portion of your payment before payday. *

* This service is currently in the pilot phase. His goal is to provide the CBA with information to understand how it can be made available to a broader customer base in the coming months.

AdvancePay Features

This “pay-on-demand” platform includes the following features:

  • Loan term. AdvancePay loans must be repaid within 4 weeks.
  • Loan amount. This platform offers between $ 300 and $ 750 of your expected salary before payment.
  • Quick approval. Once you have submitted the application, you can receive a decision on whether or not it has been approved within one business day.
  • Pay automatically. Once your employer has paid your wages into your CommBank account, your refund will be taken in full. If there is not enough money in your account on the designated payday, you will be charged an overdrawn interest rate on the remaining balance as it will be considered an overdraft.
  • Easy access. AdvancePay loans can be accessed directly through the CommBank or Netbank app.
  • CommBank customers. This service is only available to existing CommBank customers.
  • It connects to your bank account. This application connects directly to your bank account.
  • Instant financing. Once approved, you can receive your financing instantly.
  • Smart technology. Features like “Bill Sense” and “Spend Tracker” help customers manage their budget, including upcoming bills and expenses, as well as provide a breakdown of their expenses by category.

What to weigh: the pros and cons of an AdvancePay loan

  • Lower cost than traditional payday loans
  • Access to a personalized quote
  • Access your money before payday
  • No interest if paid on time
  • Only small amounts of money available
  • It is not a long-term financial solution
  • Short repayment terms
  • Interest charges incurred if payment date is missed

Fees and charges

  • Transaction fee. A fee of $ 5 applies to loans of $ 300 to $ 500. Loans of $ 501 to $ 750 incur a fee of $ 10.
  • Interest charge for late payments. An interest rate of 14.9% will be applied to any overdraft balance if the loan is not paid in full by the date indicated.

How do I sign up?

To apply for an AdvancePay loan, you will need to:

  • Be an existing CommBank customer
  • Have your regular salary go into your CommBank account
  • Have no difficulties or delays

How does AdvancePay compare to other payday loans?

Rates and fees that payday lenders can charge are regulated by the Australian Securities and Investments Commission (ASIC). Typical short-term loan fees charge a 20% setup fee and 4% monthly fees on loans up to $ 2,000. The Consumer Law Action Center estimates that this may be the equivalent of a 407% interest rate.

AdvancePay fees are much lower than that, especially if you pay off the loan in full with no interest. However, it could still be an expensive alternative if you don’t pay it on time and end up paying interest. Here’s how it compares to other app-based short-term loan services:

$ 5 for loans between $ 300 and $ 500 $ 10 for loans between $ 501 and $ 750 If the limit is not paid in full by payday, you will be charged the current interest rate on excess debit of 14.90% about the overdrawn amount

5% commission No interest

Up to 25% of your salary (maximum $ 750 per advance)

5% commission No interest

Access between $ 100 and $ 250 through Employment Hero

Fixed fee of $ 2 No interest

Compare other short-term loans

Name Product
Short Term Sunshine Loans

$ 2,000

9-14 weeks

30 minutes – conditions apply

$ 35

20% of the loan amount + 4% of the loan amount each month

$ 396

A small loan of up to $ 2,000 that is repaid over a 9-14 week period. Loans approved and financed in just 30 minutes. Centrelink should not be your main income

Agile short-term loan

$ 2,000

62 days to 9 months

1 hour – conditions apply

$ 15

20% of the loan amount + 4% of the loan amount each month

$ 372

A loan of up to $ 2,000 with terms of up to 62 days to 9 months. Centrelink cannot be your main source of income.

Safe financial small loan

$ 5,000

22 – 52 weeks

Same day: conditions apply

$ 35

Up to $ 2,000 – 20% + 4% monthly setup fee.

More than $ 2,000 – $ 400 + loan administration fee of up to $ 399 + from 8.7% to 48% APR

$ 396

Borrow $ 1,000 to $ 5,000 with same-day financing and no early repayment fees.

Ferratum Cash Loans

$ 1,900

3 to 12 months

Same day: conditions apply

$ 55

20% of the amount borrowed + 4% of the amount borrowed each month

$ 396

Borrow what you need with loans starting at $ 500 and approval in minutes.

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