According to a survey performed by Pay1Day.com in February 2010, 95% of the people surveyed declared that their greatest financial problem is that they had credit history issues and difficulty obtaining a loan. The credit crunch has made borrowing from traditional banking methods increasingly difficult, leaving room for alternative loans such as payday loans to grow from 500 stores in 1990 to over 22,000 today.
Loans are hard to come by, even with good credit. Payday loan companies fill that gap by providing cash to those with good, ok, and not-so-perfect credit and creating an environment geared towards mainstream borrowers. For example, many payday loan stores are cleaning up, installing attractive shelving, casings, and lighting. In addition, they are extending operating hours to service customers who are looking to cash checks after their regular working hours.
Online payday lenders are following suit by offering customers the ability to apply for a loan online, receiving fast approvals, and money wired into their bank accounts, all done from the comfort of the borrower’s home computer. Although they mainly operate online, some online payday lenders provide full customer support via telephone or email.
Payday loans are easier to qualify for than traditional loans, however, most lenders still require that the applicant have employment and advise not to obtain too many payday loans at once, capping it out at 2 or 3 outstanding loans at a time.