Payday Lenders

Why Payday Loans have changed Perspective towards Credit Cards

As employee of an average profit making company, a parent of three children, only earning member in a family of 7 members and having financial liability of an old housing loan, it was not strange for Joe to feel financially challenged once or twice round the year. Whether it was due to the festive occasion or for paying mandatory taxes at the end of a financial year, it had become part of his fate to either use the credit card in excess or look for someone to borrow funds. Though he somehow managed to patch up the interim need using credit cards, he can usually foresee the hazard of getting tagged under poor credit rating and subsequently, denial of request if he applies for an additional credit card.

With rising inflation every year & growing expenses in terms of higher schooling for children & better medication for parents, Joe definitely wanted a financing option better than credit cards. It was this fine day when he came across a study, a glimpse of what IRN research depicted, and was glad to learn that he was not alone; not the lone struggler in terms of those end of year gaps and someone looking for a financing form better than credit cards. Payday loans seemed a clear and obvious answer to his requirement and there were many reasons to make him believe why it was so.

As construed from this study, why many individuals preferred payday loans was because they never risked their credit rating in case their payday loan rolls over for consecutive months. In fact, a payday loaner would never care for their credit rating & therefore, a low credit rating is not a worry when requesting payday loans. This is unlike credit card providers who simply disapprove requests from below average credit holders. Many interviewees included in this research also looked at credit cards as an arrangement that only lengthen the period of their debt and found it a costly affair. Increase in credit limit was sort of a marketing gimmick for them, which would further have a negative impact on their credit rating.

On the other hand, they felt payday loans as an option much above in terms of convenience level and accessibility. Moreover, it was not their preceding economic circumstances that would control the present situation but they themselves.

Precisely speaking, many individuals including Joe have a changed are perspective today towards credit cards and preferring to approach payday lenders.