Due to convenient and quick processes, short-term, bad credit loan deals may just overtake the popular and conventional methods of borrowing money like credit cards and bank loans. This is according to a study conducted by PricewaterhouseCoopers, a multinational company known for providing industry-focused audit and assurance in various markets.
According to the director of PricewaterhouseCoopers, Simon Westcott, “[c]onsumers are pleasantly surprised at the convenient and innovative service they receive from these smaller, more agile providers.” Short-term, bad credit loan deals are popularly known for providing quick and convenient transactions, from application to delivery of loan money. Lenders of these loans also don’t require borrowers to submit any form of documentation, or even check whether their applicants have good or poor credit standing.
Meanwhile, a survey conducted by another company, R3: Association of Business Recovery Professionals, also revealed an upward trend in the number of short-term credit consumers. According to R3’s report, there are about 3.5 million adults who are considering borrowing money from short-term, bad credit loan lenders in the coming months.
With all the studies and surveys done by various expert companies, which all seem to favor the industry of short-term credit industry, credit cards and bank loans may just get left behind. Credit cards, in particular, according to Westcott, are suffering a midlife crisis these days, with more and more consumers discarding their cards in favor of debit cards and other digital alternatives to mobile payments.
Meanwhile, bank loans, which have implemented more strict and rigorous application processes these days, are also bound to decline in popularity. Credit consumers, especially those who are in need of urgent cash, want fast transactions. Bank loan applications could take weeks, sometimes months, before a loan application can get approved. Short-term bad credit loans, on the other hand, can only take minutes or hours, and borrowers can immediately get their loan money.
The industry of short-term, bad credit loans may have been receiving bad publicity, due primarily to its high interest rates, rollover rates, and other fees and charges. But as mentioned, especially during emergency situations that entail fast cash, credit consumers are after quick, convenient, and hassle-free transactions more than anything else – something that short-term, bad credit loans can provide.
Apart from expert forecasts, the steadily increasing number of short-term consumers will attest to the fact that this industry is bound to grow and that it may just be the ultimate solution to emergency financial problems. Meanwhile, in response to negative, and maybe false, beliefs about bad credit loan, national and local governments have started to implement rules to regulate the industry and ensure credit consumer protection.