A customer of payday loan is typically between 25 and 40 years of age with an annual income between $ 25,000 and $ 50,000.
According to the U.S. Census report 2000, the results of the payday loan borrowers survey are:
22% of respondents have a bachelor’s degree.
51% of respondents have a savings plan for retirement.
Of more than two thirds of respondents have a savings account.
More than two thirds of respondents have an annual income of at least $ 25,555.
Why are Payday loans popular?
They are very popular for several reasons, including:
- No credit check are required. The personal check made payable to the lender acts as security.
- The approval is quick. If all documents are submitted, perhaps your loan application approved in minutes.
- The paperwork is simple. Usually one or two documents would suffice which explains the loan process and their obligations.
- The payment process is painless. The check submitted as collateral is charged at the next payday by the lender. It could extend the payday loan back for a fee. However, this is very expensive.
- The easy availability. Payday loans are particularly appropriate for emergency situations, as long as the amount required is small and is willing to assume the high cost of borrowing.
In short, payday loans could be a viable option if you need cash and need it fast. You still should be careful that you are working to get your loan. If you do not need money immediately, there is probably a better solution for you.