There are many stereotypes of non-bank customers. There is still a belief that these are mainly people in financial difficulties, without work or indebted. However, it turns out that online loans are an offer that often finds interest among young people and those who earn a good income.
Negative opinion about non-bank companies is often based on accusations of exploitation of elderly and manipulative people. Meanwhile, statistics clearly show that many customers who decide on such a solution are young people, aware of their rights and able to manage their personal finances. They are usually at least in a good economic situation and choose a quick loan mainly because of the convenience and lack of time-consuming formalities.
Real online loans for bad credit: Simple and secure application process
A large group of people using real online loans for bad credit are people who need a quick injection of cash for a specific purpose if you need it also check out citrusnorth.com here! Often these are random events of various types that are difficult to predict, such as a car breakdown or health problems. Not everyone has sufficient savings to cover the costs associated with such situations. In such cases, time is usually very important, money is needed, so a quick loan seems particularly beneficial. Persons who take out loans with payday loans for such purposes usually have a steady income and make quick repayments. When larger expenses are needed, they also decide to pay online loans in installments, which allow the repayment of the liability to be spread over several months.
Young and modern
An online loan is a solution that appeals to young people. It turns out that the majority of customers of non-bank companies using online loans are under 35 years old. Young, educated people want to fulfill their needs and make their dreams come true, that’s why they often look for quick and easy access to additional financial resources. Payday loans that can be taken online are a very advantageous offer from their point of view – they don’t have to queue, fill out complicated applications, and spend time completing the necessary documents. At the same time, young people are not afraid of modern technologies, use the Internet on a daily basis, are able to use it and know that thanks to appropriate solutions you can guarantee a very high level of security on the web. They also do not mind the lack of personal contact with a company representative and have no problem with completing all formalities via a computer.
Online loan for student
Payday loans for 18 years are often chosen by students, i.e. people who do not always have a stable income and do not have a full-time job. A student is not a good customer from the bank’s point of view, he often has no creditworthiness. At the same time, studies are a time when many people want to invest in themselves, accumulate new experiences and broaden their horizons, e.g. through travel. An interesting offer for young people is the first loan for free. If such an obligation is settled within the period specified in the contract, the lender does not bear any costs. It is beneficial for young people who combine studies and work, often do not achieve too high income.
Online loans for current expenses
A fairly large group of clients of non-banking companies are people who use loans taken for current expenses. It can be payment of rent and bills, purchase of food or necessary medicines. It is also possible to take out payday loans to pay off other liabilities. The quick injection of cash can also be used by the unemployed, but it must be remembered that most companies will require proof that the unemployed is able to settle the contract. For some people, payday pay is the last resort, but what is interesting is that they are not the majority of customers of non-banking companies.
For entertainment, hobbies and pleasure
Interestingly, a fairly large group of customers from non-banking companies are relatively well-off people. They are people with good incomes and savings. Online loans allow them to finance travel, gadgets, and hobby expenses. They give you access to cash here and now without compromising savings. Such people above all value the freedom offered by the use of various financial products, including payday loans, which they choose mainly because of lack of formalities.
Lack of creditworthiness is the reason for rejecting a loan application
Not everyone can take advantage of a traditional loan. It cannot be denied that banks set very high requirements for their clients by carefully analyzing their creditworthiness. These financial institutions have their own credit policy and grant loans only to persons they deem credible. They take into account income, form of employment, assets owned, length of employment, liabilities paid, age, form of business and duration of the company in the case of entrepreneurs. In addition, expenditure is not without significance, which is primarily the cost of living such as bills, food, fuel. Even having a credit card or overdraft in your account can affect your creditworthiness. Demanding criteria mean that many people are not able to use bank loans. In this situation, payday loans are the only solution to get extra cash. So this is a tempting offer for people with low income, employed on a contract of specific work or mandate, already paying off the loan.
Online loans for those in debt
Payday loans are also a solution for people in debt or with a bad credit history. Many non-bank companies check the credibility of their clients, for example at BIK. At the same time, online loans without BIK are still available. This means that the creditor is not interested in the borrower’s credit history, and to receive such payday payment, you only need to meet the minimum requirements such as age of majority and Polish citizenship. In principle, the only necessary document is an ID card. What are the disadvantages of such a solution? First of all, when you take out a loan without BIK, you have to take into account the possibility of higher costs. In such a situation, the loan company bears a much greater risk that the commitment will not be returned on time. At the same time, in the event of a bad financial situation, using such an offer often turns out to be the only solution available.
Many people have problems because of poor credit history. Even if they have finally paid off their liabilities, they are still unable to use a bank loan. BIK stores information up to 5 years, and only the bank has the right to delete it. Provisions on late settlement of receivables or debts may have a very negative impact on the bank’s decision to grant a loan. Although people with bad credit history still have a chance to get money using the traditional method, it is much more difficult. If you need to borrow a relatively small amount, an online loan is much easier.
When time matters
Bank formalities require commitment. You need to collect documents, fill out forms, wait in queues. There is always time to settle all matters – money is needed for now. Not everyone has savings or has the option of borrowing cash from family and friends. The need to quickly obtain additional funds appears in emergency situations, but sometimes it is associated with finding an extremely advantageous offer, e.g. a great last minute trip. Why lose a chance for a very profitable purchase if you can borrow the missing sum instantly?
Even if cash is not needed immediately, it is important to remember that in the modern world time is money. Many people are overwhelmed by the excess of professional and family responsibilities. In such a situation, the necessity to settle complicated formalities in the bank often seems too much of a burden. Instead of standing in queues and filling out applications, you can spend time with your family or just relax after work. Quick completion of formalities without leaving home is the most important advantage of loans over the Internet for many people.
Do pensioners use payday loans online?
There is a common belief that payday loans are very often used by pensioners. Indeed, they may have problems getting a loan from a bank. Although retirees are guaranteed a stable income, they are often relatively small. In addition, the disadvantage of this group is influenced by advanced age, the possibility of health problems, as well as death before paying off the debt. Of course, non-bank companies are much more tolerant of retirees, but older people rarely use online loans. First of all, seniors often do not have access to the Internet and do not know how to use it. In addition, they usually care about personal contact with a company representative because they prefer to talk before signing the contract. Pensioners actually use payday loans, but they usually choose more traditional forms of contact.
More and more customers
It cannot be denied that the number of customers of non-banking companies is growing from year to year. Taking a payday loan has become normal and no one is surprised. This situation is affected, among others, by expanding the offer, e.g. by paying loans via the Internet in installments. Some companies specialize in granting loans to specific groups of recipients, e.g. students. Thanks to such solutions, more people can find the right offer for themselves. Also, the first free loan is an effective way to attract new customers. Non-bank companies are also enjoying an increasingly better reputation. There are many companies of this type on the market, there is competition, which is why such entities must prepare favorable offers and take care of their reputation. Unfavorable feedback from dissatisfied customers can easily be found on the Internet, and a large number of them will have a negative impact on the company’s profits.
People taking payday loans are a very diverse group. Online loans are popular among men and women, young people employed in so-called garbage trucks, but also full-time. Quite wealthy people and entrepreneurs also use this type of offer. Online loans are mainly chosen by people with Internet access who use it every day. As more and more people are connected to the Internet and know how to use it, it can be expected that this form of application will be more popular. There is also an increase in knowledge about the safe use of the network, including financial transactions. Young, overworked people will probably be more eager to get quick loans that you can get without leaving your home.