Signs of economic recovery, regardless of how robust and where they are read, are not likely to dent the global growth in payday loans. From the U.K. to the U.S., Canada and across the globe to Australia, short term loans made to employed individuals have become firmly ensconced during the recession as a means of obtaining emergency money.
The losers in this trending are credit cards, auto title loans and other forms of both secured and unsecured lending. As millions of people have either lost or been refused revolving credit, they have discovered the low-commitment, short-term nature of payday loans. These are some of the reasons for the surge in popularity of short term loans.
Short Term Loans Now in Online Form:
A dramatic innovation over the bricks-and-mortar retail locations of the past - short term cash loans can be processed in about five minutes. The borrower can also execute the transaction entirely from a personal computer, including when he or she can pay bills online with the emergency cash. This reduces the time commitment from about 120 to 180 minutes down to about ten minutes altogether.
Ease of transaction:
The features of a payday loan are easily understood: It’s money for emergencies, based on (a partial) value of a paycheque. But the process is just as important, perhaps even more so. It just simply is easy, paperless and straightforward to take out short-term loans, with key benefits:
Transactions from a computer are largely protected from discovery by family and friends, as might otherwise occur when going to a retail location.
In the U.K., the payday loan can arrive in about one hour, deposited directly into the borrower’s bank account. In the U.S. and other countries, that might require a single business day for the transmission of loan funds.
Under most circumstances, borrowers do not need upper-tier credit scores. The loan is based on being employed, less so on past money management behaviours.
Even as lending and credit loosen up, the behaviour of seeing payday loans as a normal means of accessing emergency money is likely to continue.