The banking industry often refers to payday loan companies as unworthy. Banks will argue that payday loan companies are designed for low-income people and individuals without established credit.
The truth of the matter is that payday loan companies assist individuals with all different types of income and credit throughout the world. Banks lick their chops on long-term loans and somewhat despise the short-term solution available from payday loan companies. In reality, payday loan companies are taking business away from the traditional bank loans. Banks look at the bottom line and they do not concern themselves with the short-term needs of many borrowers. Many people feel that banks will encourage the borrower to get a bigger loan than necessary. (more…)