Personification of the Cash Loan


by John Mussi - Date: 2006-12-31 - Word Count: 516 Share This!

Over the years, the ideology of the cash loan has made many changes. What started as no more than a payday loan has created the giant conglomerate that we now know as the cash advance loan. Created on the same premise as the payday loan but with some flexibility in a repayment schedule, it provides a means of meeting some emergencies for those who are unable to obtain traditional financing.

How Cash Loan Companies Have Evolved

When cash loan companies first came into the market as payday loans, it was very difficult for someone with bad credit to obtain a loan in the traditional way, thus these loans provided a way for those with bad credit to pay bills that came due before payday. It was especially important when faced with electrical shut off or the repossession of the only vehicle that was gong to get them to work. Of course, over time, it became evident with the number of people who were asking for extensions of time to pay that a payday loan just wasn't enough time for many. Thus, the advent of the cash advance loan became a prominent contender in the market, allowing for several extensions on the payment term and more funds than the traditional payday loan.

Traditional Loan Competition

Of course, right on the heels of the cash advance loan came the realization by traditional lenders that the number of people with good credit was dwindling, and if they wanted to stay in business and remain competitive, they were going to have to relax their standards and be willing to approve some high-risk loans. That opened a new avenue for many people who were previously delegated to the status of the short-term cash loan. This created more competition for the payday loan and cash advance loan companies, but it did not put enough pressure on them to drive away business. After all, there were still those who would not qualify for traditional financing for any number of reasons, or who preferred the fact that cash advance companies did not require a credit check for their loan processing.

Choosing the Cash Loan Over the Traditional Loan

With this evolvement of bad credit loans that traditional lenders now offer, one can only speculate why some people still choose the payday loan or cash advance loan over a traditional loan. For some, it may be their comfort zone. They fear is they go beyond the confines of a cash loan, they are likely to borrow beyond their means and end up in debt. Perhaps that was the downfall of some people who have bad credit, and the cash loan gives them some level of control because they know that they are limited in how much of a loan they are allowed to have and the amount of time they have to pay the money back. In that way they prevent themselves from becoming overburdened with debt. At the same time, it does not give them the flexibility or ability to rebuild their credit, but for some, that may not be as important an issue as it is for some others.


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John Mussi is the founder of UK Bad Credit Personal Loans who help homeowners find the best available loans via the http://www.uk-bad-credit-personal-loans.com website.

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