The Pay Day Loan Industry

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The pay day loan industry is one of the fastest growing businesses concepts that our country has ever seen. Supposedly it is set-up for emergency access to money when you needed the money like yesterday. This industry sprung up on the skirts of epidemic bankruptcies in the USA. Working class people had become accustomed to spending more than they had on the promise to pay the money back at a later date. Predictably such types of spending habits catch up with you and eventually people become so over extended with credit card payments, cars that they could not afford but wanted -- and got anyway plus any of a number of other buy now pay later types of purchases that record bankruptcies were the result of many families coming to reality with…show more content…
While still other short term loan companies will only approve you for a loan if your employer verifies you are still employed, pay check in hand or not. Competition has gotten so fierce that merely presenting a bank statement showing proof that you have an open account is all Pay Day Loan companies are looking at. It doesn 't matter if your balance is at a negative $500 or that you have had a hundred overdrafts within the last year you in most cases will still qualify for some type of loan. Credit checks normally are not done when you apply for a Pay Day Loan so your credit history isn 't held against you. Some companies are members of a inner circle type of credit checking system that checks for bounced checks and how many other pay day loans a client has out. Too many of these types of issue can limit the amount of money you can borrow or disqualify you all together. That 's really all the information most companies ask for and then are willing to loan a person as much as $1,500 on their promise to pay them back. With all of these financial negatives in the pay day loan industry one might wonder how companies could ever make a profit, the answer is in their finances fees. Because pay day loan companies understand that they are mostly dealing with people with bad credit problems to begin their rates are based on what sector of the financial world they are dealing with. Because they don 't
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