RJ Sheppard's blog

We've been reviewing the Pew Study on Payday Lending in America - an amazingly well written study published in 2012 on payday and bad credit loan lending and the borrower behavior that surrounds them.

In this section we look at "What Would a Borrower Do Without Payday Loans as an Option?"

The study cites some not so surprising behavior including:

Most people would assume that it's simply not possible for people with bad credit to apply for and actually get a credit card and not get completely ripped off!  But think again... the credit card companies have products for virtually all credit types including folks with bad, fair and no credit.  These cards are not the same cards people with good credit get but they are cards and they do provide credit in some form.  They can also help you rebuld and repair your credit

I think most people tend to believe that borrowers use bad credit and payday loans to cover life’s unexpected emergencies over the course of weeks not months – not so according the 2012 Pew Study on Payday Loans mentioned in previous blog posts.  While it’s true that many people borrow primarily to cover life’s emergencies, most people with bad credit borrow to cover ordinary living expenses over the course of months and the avera

According to a study done by The Pew Charitable Trusts in July, 2012, over 12 million Americans use a payday loan each year.  How many?  TWELVE MILLION which means demand is high. 

In mid 2012 The Pew Charitable Trusts conducted and released a well done study on Payday Lending in America called “Who Borrows, Where They Borrow, and Why”?

The report was well done and written in a way most people can understand and find easy and informative to read.  In a series of upcoming blog posts I’ll go into more detail on their findings which were based on these four questions:

Essentially nothing!  They are all generally assumed to mean the same thing i.e.: a small, short term loan made to a consumer by a lender that is intended to be paid back in full by the consumer's next payday.  Loans are typically between $100 - $1,000, typically carry high fees and interest rates and are not available in all states.  Our friends in Canada and the UK have their version too. 

You should care!  Good credit opens doors and opportunities that make life less expensive and more enjoyable.

Who wants friction in their lives?  A good credit score helps in many aspects of life including when you apply for a car loan, credit card, new cell phone carrier, rent an apartment or home, or in some cases when applying for a job.  It’s a nice feeling when you can move forward in life versus feeling like circumstance is holding you back.

Probably not.  “Can I get a payday loan without a job”? is probably one of the most common questions we hear.  Unfortunately (for those without a job), while you may have employment history, payday loan lenders typically require applicants to have a job for at least one month.  Lenders also typically require applicants be a U.S. citizen or permanent resident, have an active checking account, and be at least 18 years old.


Would it surprise you to learn that two-thirds of all Americans claim to live paycheck to paycheck?  That’s exactly what the American Payroll Association discovered in a survey of 30,600 people released in late 2012 as reported by Reuters.

2013’s Pros and Cons of Getting a Bad Credit Loan

There are pros and cons to everything, including getting a bad credit loan.  Weigh the pros and weigh the cons and the answer to “should I get one of these loans?” should be clear. 

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