Who Uses Payday Loans

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Pundits and consumer advocates would have everyone believe that the only people who use payday loans are the poor and uneducated. In reality, this couldn't be further from the truth. Study after study has shown that the typical cash advance customer is just like you and I. According to the industry association, the Community Financial Services Association of America (CFSA), a prototypical payday advance customer comes from a middle-income and well educated family. An overwhelming majority, 94%, have at least a high school education, with 56% having some college or a degree. Additionally, nearly half of industry clients own a home, about 42%.

It is clear that deferred deposit services are not targeted at the poor or uneducated. Instead, it is obvious that the product is used by mainstream Americans who are educated, financially and otherwise, and are more than capable of making informed decisions regarding their finances. After digesting this information, the reader may ask him/herself, "Then why do these people choose to use payday loans," a valid question.

The answer is actually quite simple. People want to do business with companies which treat them with respect, offer them a great service at a fair price, and provide excellent customer service. All of these characteristics are trademarks of the payday advance industry. When doing business with a CFSA member company, a customer can count on being treated like they should be. All fees will be presented clearly and concisely so the price can easily be compared to other credit products. If there are any questions, someone will always be ready to answer.

Applying for a loan is simple and hassle free, with applications typically being only one page in length. Besides filling out an application, all it takes to obtain a post-dated check loan is proof of income and address, along with a checking account and ID. After the application is processed, the customer walks away with a check or cash in hand. Requesting a payday loan online is even easier - most internet lenders don't even require any documentation. An application is simply filled out online and the applicant is contacted a short time later. The loan proceeds are then deposited directly into the consumer's account the next business day. No other industry provides credit in such a short amount of time and with so little hassle.

When compared with other short-term credit options, the price of a payday cash advance simply can't be beat. Bounced check fees are a great example. In 2004, the average fee charged for a bounced check was $28.51, and it's even higher today. Additionally, as some readers can surely attest, one bounced check often leads to more. With an average fee of just $15 per $100 borrowed, it is easy to see why people choose payday advances as an alternative to expensive non-sufficient funds fees.

When people choose to use payday advance services, they almost always walk away satisfied with the experience they had. And, the satisfaction doesn't end when loan is approved. All the way through the entire loan process, from filling out the application, to paying back the loan (and even during the collection process, if needed), the overwhelming majority of industry customers are happy with the service they receive. According to a Cypress Research Group study, that number is from 80 - 90% of all customers. More traditional financial service providers, i.e. banks, credit unions, etc. can't even hold a candle to that number. People who work in the industry realize that having such great customers is a privilege, not a right, and treat them accordingly.

It seems there will always be those who feel it is their duty to make other people's choices for them, whether it be financial decisions, or otherwise. In contrast, payday advance companies, owners, employees and customers know that the best way is to inform people of their options and let them decide for themselves. Consumers know their own situations, and have the ability and information necessary to make informed decisions about their credit and finances. After all, the people choosing to use payday loans are the same customers who choose to buy homes and go to college - which pretty much everyone agrees are great choices. So, next time you hear someone say that the payday loan store on the corner is robbing from the poor or uneducated, don't hesitate to let them know - chances are, the people who visit that store are pretty much just like them.

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About the Author

Michael New Jr. is an authority in the financial industry. He has written hundreds of articles relating to consumer services and Payday Loans. Contact Info: Michael New Jr. (866)294-4672 miken@checkcity.com http://www.checkcity.com

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Why Use a Payday Loan Company

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Payday loan companies are the main source of ready cash as they lend money to borrowers at the time of financial distress like late payments etc. Payday loan companies lend money for short term period even if the borrower has a bad credit record. For many people these companies come as a great relief especially for those who need extra cash for their progressing business. Cash flow problems can be faced at anytime so instead of using credit cards with very high interests, use payday companies for your unpredicted expense. Sometimes people who are very conscientious with budgeting can find themselves in tight financial constraint. Payday loan companies offer quick approvals of loan and within few hours’ access to funds.

The reasons to use a payday company are that you can fulfil your cash requirements for daily uses quickly. For example you don’t need to delay your car to be repaired, home to be painted and utility bills to be paid. Secondly they charge you less interest rates as compared to credit card cash advances. Payday loan companies provide multi purpose loans which you can use at your own disposal and they don’t require any business plan or any lengthy documentation.

Payday loan companies have very simple loan requirement for individuals who are in need of personal loans. They don’t need applicant’s high credit rating as most of banks don’t approve unsecured loan. The only requirement needed for payday loan is borrower’s steady and stable employment, valid checking account, no advance balances outstanding and age limit to be at least eighteen. You have normally thirty days available for repaying your debt depending upon your schedule of payment.

People need money to buy a new home or a car, pay college fees or outstanding loans and to buy things which were considered to be very expensive, they can now afford it easily with the existence of payday loan companies. Living standards are improving day by day. Students are getting loans easily for their higher education. Most of the colleges affiliate themselves with some list of payday companies as they offer students some special lending program.

Payday loan companies requires flat rate of fees. They don’t charge you any extra fee unless you keep paying back payday loan in time. These companies are also offering very simple online three steps to get a loan.

1. Fill in online forms
2. Applied money will be wired to your account in few hours
3. On the fixed date the decided amount will be transferred back to bank account from your account.

Another reason of using payday loan is that lender requires checking the borrower’s account initially but this trend is now changing. Nowadays if borrower has strong income he gets the loan. Payday Loan Company comes out to be advantageous for only those people who can pay it back easily and on time. If you need money for your short vacation you can get it from Payday Company without any hassles within few hours if you are applying for it online.

Article Source: http://www.articlenorth.com

Mark Davidson has been associated with Online Payday Loans UK . After completing his Masters in Finance, He is providing his useful advice through his articles on bad credit payday loans for the residents of the UK. Learn also how to apply for a payday loan to get fast cash on the same day.

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Direct Lenders Vs Payday Loan Brokers

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What makes direct lender payday loans different from indirect lenders is that the latter do not provide loan to customers directly but they send application of borrowers to the direct lenders and they take their commission on every application they forward to direct lenders. Hence, the best way to cut down the cost of borrowing money through payday loan is to go for the direct lenders to borrow cash.

Direct lenders always have strict rules and policies which can benefit borrowers. You will not have to pay some extra amount for the commission of any third party these lenders deal directly with their customers without involvement of any middleman. You can reduce up to 10-20 percent of interest by dealing with direct cash advance lenders for instance if you deal with indirect lenders then you will be charged 30 dollars interest on 100 dollars loan amount but if you deal with the direct lenders there are chances that you will get on 10 to 20 dollars interest per 100 dollars of loan. Also, they can provide faster loan compared to indirect lenders because indirect lenders may take some extra time in sending application to direct lenders for approval.

Borrowers can get better deal with lower rates by shopping around and trying to get the best rate. When a lender works through a cash advance network they have to pay a commission on every prospect that comes to them through the network. Cash advances are not cheap, so whatever you do to cut the cost is going to be to your advantage. Another reason why they are cheaper is that online direct lenders charge moderate interest rates. Using the Internet is the cheapest way to do business. Online lenders save money and pass on their savings to their clients. Direct lenders are far more flexible as far as completion of procedures and formalities are concerned.

Direct lenders allow borrowers to apply for loans online or even through the telephone. They sanction loans without credit score checks and verification of documents. Loans are processed very quickly. If you want a payday loan which involves no tracking over telephones and no faxing of documents, choose direct lenders. They will transfer the loan into your account in just one hour after you apply.

All you need to have is a job, a checking account, and one form of photo ID. You must also be 18 years or older to qualify for a loan. You can borrow amounts up to 1500 UK pounds, depending on the place you live in and how much money you make per month. You will then have a couple of weeks to pay it back, which is until your next payday.

These loans are short term loans and you have to repay them on the due date but direct lenders may extend this due date on your special request. If you have plan to extend your repayment date then you should carefully read about their repayment rules and late payment penalties before applying for cash advance to save yourself from trouble. Additionally, if you are able to repay the borrowed amount as per schedule, it will help to improve your credit rating, and subsequently you will be able borrow more money on better terms in case such a need arises in future.
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