When in dire need of cash, credit consumers definitely have a lot of options, from applying for loan in banks and financial institutions to borrowing money from their family or friends. With the introduction of the concept of payday loans, however, the credit industry has indeed developed, widening its customer reach and providing an easier and faster option through bad credit loan deals, or more commonly known as payday loans. Several studies revealed that the payday loan industry, in particular, has experienced tremendous growth in recent years. In the United States alone, the industry services about 20 million credit consumers each year, with a loan amount of $350 on average.
Payday loans are convenient, short-term loans designed for people who are in need of instant cash. These loans have been proven helpful to people who live paycheck to paycheck. The processes involved – from loan application to evaluation, and from approval to delivery of loan money – are fast and easy. Consumers just have to wait a few hours, and even minutes, before their loan application can get approved. Cash is delivered often through the borrowers’ bank account, although some lenders also have pickup points. And because these are short-term loans, borrowers are expected to pay the money back in two weeks time, with the agreed-upon interest rate.
Another thing that makes payday loan deals easy and truly remarkable is the fact that these loans are advertised as bad credit loan deals. This means that consumers with bad credit history are not exempted from these loans. Having a bad credit standing used to be a financial dead end for borrowers. These days, however, there is no reason why borrowers can’t get approved of a payday loan. Whether borrowers have an excellent or a poor credit standing, they are qualified for bad credit loan deals. Aside from these, bad credit loan deals don’t require collateral, which means borrowers won’t place their home, car, and other valuables at risk.
Unlike bank loan applications and other traditional forms of borrowing money, there is nothing much to worry about with bad credit loan deals. Credit consumers just need to provide their lenders the assurance that they are able to pay back the money by submitting basic information, which include name, address, and employment details. The approval and the amount of loan money, in general, depend on the borrowers’ income.
Consumer Federation of America statistics show that, toward the end of 2010, there are over 19,000 lenders of bad credit loans, and this was seen to be in a steady growth. With the quick and ease of process, there is no wonder why the industry is in an upward trend these days.