Data concerning the instant loan industry is sometimes very uncertain and incomplete. Yet, an average of 12 million Americans applies for personal loans annually according to some statistics. And, among them are approx. 2.5 million households that require instant bad credit loans, each year. About the same number use at least one payday loan each year because they have trouble making the ends meet. It is found that the average borrower in the US makes about $30,000 per year which is about 58% of the entire population who are facing serious financial shortage at least once a year.
In 2020, there are hundreds of online companies that offer credit at various rates, for good and bad credit, and offer all the standard benefits. This makes it very difficult for a borrower to figure out the right company or lending agency for their specific case.
The Shortage of Figures for Instant Bad Credit Loans
The instant bad credit loan agencies are constantly under threat from legislators, consumer advocate groups, and the media for sham schemes run by many. This is the reason why some honestly working companies are also under the pressure. These instant loans are also called payday loans and are a form of short-term loan, at the basic level. And, merely the name makes people suspect looting money through fake schemes, and this deters governments to make regular and accurate surveys.
- These lending firms often receive a bad reputation for thigh-interests rates and excessive fees they incur even for a short amount and short period.
- This is the reason why the US lending industry has seen a decrease in revenue by $10 billion within a period of 10 years (as per the 2006-16 report by Jefferies LLC).
- This is a decrease from $40 billion to $30 billion, which is still a pretty huge figure on its own.
The thing that makes it even worse is for the millions of households, which account for almost 25% of Americans that are without any access to banks and are called ‘Unbanked’ population. They are unseen and unnoticed by all and during times of crisis, they have no alternative than look for an instant loan lending company. They are often without any credit history or bad credit score, but it is not a surprising fact given the conditions and lack of jobs they face. Thus, instant bad credit loans are a way to get some quick cash from as low as $100 to $1000 depending on your emergency.
As said by many, this is a way of last resort to help you fix your problem. If you have a paycheck, you can adjust and repay by the next paycheck. Make it as soon as possible!
The Process and the Basics
Loans are offered in several categories by most lenders even during coronavirus crisis, and many of these have a small storefront in small neighborhoods besides households and residential areas. They are most active in small cities but also in big cities based on demographics. These instant bad credit loans provide access to quick cash, using just online application and disbursal of money directly to the account. The repay is also scheduled for your salaried account. The time taken is usually in minutes and if your application is rejected as well, you don’t have to worry about this affecting your credit score. There are various benefits from one company to another, and 2020 is surely a tough-sale competition.
Thus, despite some firms with predatory lending practices that come with alarming costs, most households have no options during a time of unforeseen crisis like medical, legal, or otherwise.