What Categories of People Can Get an Online Loan?

Microcredit organizations issue loans online to many categories of people. They usually do it to overcome temporary financial difficulties and cover unplanned expenses: pay for courses, car repair, buy medicines or necessary goods. The interest in fast loans is high because the application procedure is significantly simplified, and the likelihood of approval is also much higher.

Who Can Apply for a Loan?

The typical borrower in the US microcredit organization should meet the following eligibility criteria:

• be at least 18 years old;
• be a legal resident of the United States;
• have a regular income;
• have a bank account.

Many people are asking if a person with a bad credit history can apply: in fact, MFIs are more loyal to such borrowers in terms of application approval, but the conditions may vary significantly. As for the vulnerable categories of people as pensioners or students, there is also a chance to get approval if a person meets the above criteria.

Who Uses the Payday Loan Services?

To understand who is the client of the MFIs, we turned to the available statistics provided by such services. Men more often turn to payday loan services — about 58%. The majority of borrowers are young people from 21 to 30 years old. In the second place, borrowers from 31 to 40, while people older than 51 are the least likely to apply for loans before payday.

The statistics of users’ employment are the following:

• 75% of clients have a permanent job;
• 8% are entrepreneurs.
• 5% are unemployed.

The average loan amount is $500. This will not cover large expenses, but it will be enough to cope with financial difficulties before the salary. The loan term in such companies is up to 30 days — this is exactly the period during which the client manages to solve financial problems and not remain a debtor for a long time.

More often, people take microloans for the following purposes:

1. Payday loans;

2. Consumer goods;

3. Medical treatment;

4. Home repair;

5. Car repair;

6. Loan refinancing;

7. Entertainment and traveling;

8. Other needs.

It follows that most Americans take loans for necessities: everyday expenses, family, and children’s expenses, medical treatment, etc.

Why Do Americans Choose Online Loans Services?

People are allowed to get a loan on a card around the clock in one click. At MFIs, the lending procedure from the moment of applying to crediting money takes no more than 20 minutes. Their goal is to provide financial assistance quickly, which will take several days in the bank. 

Each borrower is checked by a scoring system, which can predict how accurately a person will repay a loan. The forecast is based on mathematical calculations and statistics. After evaluating all the parameters, the program calculates the borrower’s overall score. The most reliable clients have the highest rating and the maximum chances of getting a loan on favorable terms.