Have you ever thought how and when Cash Advances or Payday Loans originated? The payday cash loan has quite an interesting past.
A payday loan is a short term loan that is provided to the borrower to help them at the financial crunch till the next payday. It need not require any collateral or a credit check and is given to US citizens, on the fact that the borrower has a regular income. The demand for such loans is nothing new. It started in 1930’s. Many companies offered stores where workers could buy their basic necessities on credit, the price of those items were deducted from their next month’s pay. It was a natural process to offer cash advances on paychecks. Formerly, payday lender companies were individual owners operating in local markets. They opened up stores offering loans based on their employment record. The borrowers would give them a postdated check of the agreed amount plus interest fee and take the cash instantly. The pattern hasn’t changed much, but the procedure has with new technologies.
As the web gained popularity and became a common need in almost every home in America, the cash advance companies entered the World of internet. It fastened the application process, putting loan amounts directly in to the account of borrowers within no time and then take out the money from the borrowers account to repay the loan on the agreed upon due date without moving out from the home.
Payday loans have grown as customer needs have changed. It is hard to say what changes the future will bring, but the Payday loan industry will rise up.