California payday loan lending activity has increased dramatically in the past two years. This increase contrasts with the fact that we’ve seen many direct lenders exit the business because of increased regulations. Other firms that fund California installment loans are leaving the business as well because of an increased cost of doing business. So that begs the question. Why is this happening? Why do people continue to get payday loans in California? The growth in payday loan borrowing can be attributed to two main factors:
1. The demand for California payday loans was always there, but we’re seeing more consumers turn to online payday loans because of the recession that’s hit California..
2. Payday loans are now primarily offered online in California, versus when there was no internet. That means people are now able to get their loans more quickly and easily.
California payday loans have been around for decades!
In situations like what is detailed above these lenders will try to fill the void in the market, whereby borrowers needed money quickly and without the hassle traditional banks tend to cause. However, as more and more people go online looking for California payday loans, such lenders need to make changes in their operations in order to remain competitive in California’s market.
An online lender will typically have lower costs than a lender who has a physical office or premises where to deal with clients. For example many retail lenders have brick and mortar facilities all throughout the state. This means they have to pay for rent, supplies, staffing etc.. Therefore, chances are that the fees will be lower with online payday loans. In California for example, many payday loan companies have to pay high rent and other day to day expenses if they’re going to be lending out of an office. Having said that, it is critical for a borrower to make sure that the online lender in California he is going to be dealing with is credible and regulated. Since an online lender is practically invisible, meaning in-store interaction between the lender and the borrower is non-existent. Thus an online lender needs to make sure that the client is being offered the same level of service through the website that they would otherwise get in a retail payday loan store anywhere in California. For example, there needs to be a clear delineation of how to contact the lender if something comes up. There is always the possibility that the borrower ends up dealing with a direct payday loan lender that’s not in the state. It is imperative that before choosing which online lender to trust, a borrower makes a complete decision concerning their payday loan application.
Online payday loans in California can be approved within minutes
Thankfully, many borrowers do just that, as there are several reputable online payday loan lenders that offer loans to California residents. These lenders will also typically offer competitive interest rates and low fees. Keep in mind, these lenders are typically the same California payday loan lenders that fund loans in your neighborhood. CheckintoCash and ChecknGo are two examples of huge payday loan companies here in California that also have a large presence on the interent. One thing we’d note is that direct payday lenders need to make sure that the customer service and person to person interaction is also offered by them. Setting up a website that offers loans to consumers in California is just the first step. A website is essentially like an online store or office, and it needs to be given as much importance as a store in any city in California would. A online lender needs to make sure their site is accurate and they must maintain the site and get back to consumers with payday loan related questions within 24 hours. In summary, there will always be a need for payday loans in California. As the economy grows and falls we’ll see people take out online loans at their will. As a reputable direct online lender it is very important that California clients are given quick service and a quick loan application process in order to keep their business.