Payday lenders such as Dosh Express are examples of alternative financial providers that operate remotely from federally insured banks, credit unions and thrifts. What makes payday loans attractive is that it can be approved easily. These providers usually don’t check the borrower’s credit nor report them to major credit bureaus. This makes it more attractive for those who doesn’t have an outstanding credit history and for those who are afraid that their loans maybe rejected by traditional depository institutions. Interestingly, payday lenders even assume that all of their clients do not have good credit standing that is why they no longer pull credit reports. They say that these reports do not have that much weight in their decision to approve loans because the additional information is not that informative. Also, relative to the loan amount, it is expensive for them to pull credit reports.
Most transactions of this nature take place at a loan storefront and the process details are different from one state to another based on their laws. The process starts off by passing certain requirements to the storefront. Generally, those interested in obtaining payday loansshould provide an identification card, a bank statement, and a pay stub. Once these are checked and the application form is completed, they loan can be approved with just a matter of minutes. The post-dated check amounting to the loan and the fee to be given also in the storefront will serve as the collateral and that is as far as it gets. In addition to that, the borrower also has to sign a waiver promising what is due usually after 14 days. On the day the borrower pays the loaned amount, the establishment will give him back the post-dated check. For some states, the borrower can deposit the amount borrowed and the fee so that there will no longer be a need to go back personally to the storefront. In those cases, the customer doesn’t need to pick up the post-dated check. There are some states that allow loans to rollover for an additional fee. This will enable them those who are not capable to pay and those who still need the money some more time. In other states, they also permit loans to be given to the same client the same day he pays the old loan while some they require a cooling period before another loan. So the rules surrounding such providers depend on the state laws covering them.
What Makes Payday Loans Attractive?