Americans have always been told how bad credit is and how to avoid it. Most of the time, consumer groups, nonprofits, banks, and government agencies do this kind of lecturing. Some of these groups have nothing to do with the everyday lives of most Americans, while others have caused debts worth billions of dollars. Americans who are smart have usually taken this advice with a grain of salt and then made well-informed decisions about their credit needs, taking into account their own situations and their ability to pay back such credit.
Payday loans without faxing are now a normal part of life. When they first came out, they were bought by some people who just wanted to make a quick buck. In any emerging market, this is a given. But with time, the rise of honest, customer-focused businesses, and State and Federal regulations, this market is now seen as mainstream and used by most Americans.
Most online lenders explain that payday loans are small loans that are paid back quickly. They are meant to help with short-term cash flow problems and not long-term loan obligations. Most people know this and treat them as such. If you look at their APR as a number, it is high, ranging from 250 percent to 500 percent. But most people don't think in terms of APR; they think in terms of dollars. They can see that a long-term loan with an interest rate of 500% is bad for their finances, but they can also see that a two-week loan with a cost of $15 per $100 borrowed is a great way to solve a short-term problem without going bankrupt. Taking into account the alternatives, like bank fees for bounced checks or late payments, embarrassment, and ruined credit scores, an online payday loan can be seen as a normal, mainstream solution to a normal, mainstream problem that comes up every day.
Consumer advocates see Faxless cash advance customers as part of the financial mainstream, which is different from the customers of loan sharks in the 20th century. Also, unlike loan sharks, payday companies don't go after people who are poor or have no job. To get this kind of loan, you must have a job, make a certain amount of money each month, and have a good checking account. In other words, you must be in the financial mainstream of today. A study paid for by the industry and done by Georgetown University's Credit Research Center found that half of these borrowers come from households with incomes between $25,000 and $50,000 a year. A quarter of them make more than $50,000 a year, and a quarter of them make less than $25,000.
These loans are now just one of many ways that Americans can get credit. If you use them the way they were meant to be used, they can save you a lot of trouble and embarrassment, protect your credit score, and even save you money.
