A Financial Review of the U.S Short-Term Loan Market 2020

The short-term loan (also known as the payday loan or cash advance) is an unsecured loan borrowed over a short term with a high interest rate. The payday loan is typically settled upon the borrower’s next payday. Cash advances can be obtained through a line of credit or a payday loan provider. To receive approval for a payday cash advance, the applicant must be 18 years of age or older, provide proof of employment, proof of residence, and details of an active bank account. In the United States, regulation governing the issue of payday loans differs between states.

A payday loan can range from $300 to $1500. The online cash advance is issued in accordance with the earnings or salary of the borrower. Cash advances can be obtained through a brick and mortar lender or through an online lender. To facilitate a loan application, the lender will request the paycheck or proof of salary from the borrower. Total earnings serve as the principle for the borrowed sum and lending rates. A borrower’s credit score can have a direct impact on the success of a payday loan application.

A bad credit loan is a payday loan with high interest rates and a short repayment period compared to the typical cash advance. The bad credit loan is an unsecured loan issued by a payday lender to applicants with a negative credit history. The bad credit lender is issued the loan based on proof of income and affordability.

The interest charged by a payday lender can reach 500% in its APR (Annual Percentage Yield). In the United States the usury laws have restricted the charge of interest to below 35%. According to the Federal Truth in Lending Act, payday providers in the US are required to exercise transparency when issuing rates and loan charges.

Matching services such as PDLoans247 provides borrowers with reasonable credit access to payday loans where accessing funds are limited by conventional credit unions and banking institutions.

How to Improve Your Chances of Receiving a Cash Advance

At PDLoans247, we adhere to US regulatory requirements concerning the issue and the application process for payday loans. With the recognition of tough economic markets and consumer salaries remaining unchanged, the payday loan has become part of the solution to alleviate the debt crisis. As 80% of Americans are managing some form of personal debt, the convenience and the ease within which the cash advance can be obtained have contributed to the popularity of the short-term loan.

According to Federal lending standards, we offer competitive interest rates based on the unique requirements of our customers.

Payday Loans Vs. Online Installment Loans

The online instalment loan differs from the payday loan in that borrowers are provided flexible repayment terms. Installment loans do not have to be settled upon the next pay day but rather in affordable installments over a specified period. Installment loans are typically more than the payday loan providing approved borrowers the opportunity to apply for $1000 to $10 000.

The installment loan has grown significantly in popularity among individuals seeking fast and affordable means of debt relief. From pressing emergencies to rent, vehicle expenses, and outstanding bills, the cash advance and the installment loan have changed the way borrowers seek finance.

How Online Installment Loans Have Grown:

A Financial Review of the U.S Short-Term Loan Market 2020

The chart is representative of a study in which more than 25 million loans were issued from the period 2014 to 2018. It is based on the loan funded volume at an index of 100.

(Source: Bloomberg, 2019).

The rapid rate at which non-traditional loans are being sought from approved creditors begs the question whether consumers are being provided the flexible financial solutions they seek. Unfortunately, rising costs of living with minimal salary or wage increases have placed consumers in a financial predicament.

Average US Household Salary Increase 2010-2017

Year Percentage
2010 -2.7
2011 -1.4
2012 -0.3
2013 1.8
2014 3.7
2015 5.2
2016 8.4
2017 12.5

Source: U.S. Census Bureau and Bureau of Labor Statistics

The slow growth of salary is depicted over the last 7 years in which households have simply been unable to keep up with higher cost of living.

Why Choose PDLoans247 for Your Online Cash Advance Needs

As cash strapped individuals continue to feel the pinch, the rise in the demand for payday loans and online instalment loans is expected to remain prominent.

At PDLoans247, we help you find flexible and affordable online cash advances and short-term loan solutions to address your financial emergencies and more. Online payday loans are quick, easy and hassle free with our online loan application. You can learn of your loan approval in only a few minutes provided that all relevant details and documentation are submitted.