What Would People Do Without Payday Loans?

What Would People Do Without Payday Loans?

As we mentioned at the beginning of the article, all types of buyer personas apply for payday loans despite the gender, occupation or age. They include the new wave Gen Z and older Gen X representatives that are the domination force in the consumer industry. The types of debts owed by them are as follows:

  • Credit Cards – popular with all three major consumer categories including Baby Boomers (78%), Gen Z (70.2%), and Gen X (74.8%);
  • Student Loans – more popular with Gen Z consumers estimating 58% of all borrowers;
  • Unpaid Bills – the percentage of these debt types has reduced over the years estimating the average 30% of borrowers.
  • Auto – about 35% of borrowers apply for fast cash advanced to have their cars repaired.

The rest of the debt types include medical, mortgage, personal and some other types of loans. In other words, we find ourselves in a situation where fast cash advances are no longer urgent help. They have turned into a trusted, easy-to-access, and trouble-free source of extra cash to oppose out-of-date and time-consuming conventional crediting concepts.

A special survey has been conducted to find out what people would do if there were no cash advanced offers. It appears that 81% of all borrowers would try to cut down on expenses while more than a half would probably be forced to postpone other bills repayment. Almost everyone would try to utilize some other offers including banks and credit unions. Here is the question: how would they apply when 53% of ALL borrowers opt for cash advances only because they were unable to get credit anywhere else according to Statist?

The problem is they would probably be rejected due to more and more unpaid bills that influenced their credit score. Most of them would http://paydayloansohio.net/cities/lyndhurst have their backs against the wall in the end. SO, why should we borrow form family, relatives or friends? Why should we refuse to buy things we need like clothes or food? Online payday loans appear to be the best solution.

Direct Online Lenders

When you decide to access your fist loan, you will have to choose between a direct lender and broker. With so many offers online, there appear companies that act as intermediaries between firms and applicants. T define, which option is the right pick, let’s highlight the core features that apply to each party.

What is a Direct Lender?

A direct lender is an agency or firm that provides payday loans directly without opting for third-party services. It will work for those who do not want to pay extra fees and get their cash directly from the lender.

Good news is that all companies that provide any financial help are licensed and regulated by the state government. They follow all the necessary requirements and never overcharge rates and loan costs.

What Is a Broker?

A broker is a company that actually helps you to find the best-matching lender. It never handles the financial services itself. It is only a link between a customer and the agency. For applicants, it results in extra fees or commissions.

How to Identify a Broker?

Identifying a broker will hardly be a hassle. All you need is to keep an eye on details indicated in the broker’s site. They may include the following:

  • The Official Statement – a trusted intermediary will always state that a firm acts as a broker but not a direct lender. If there is no such information, you might notice them speaking of “panel service providers”, which is also a sign of you dealing with a third-party agency.

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