Now is the best time for credit unions to step into the space of the predatory payday lenders place. Often, these payday lenders place themselves following the mainstream financial institutions, they have been providing complementary loan services which should be the role of credit unions. With this, they can provide lower cost according to the study of Filene Research Institute. The problem with credit unions is that they deny consumers who want to avail small dollar loans especially those with very limited credited histories.
The consumers can be good candidates but still, they are not entertained by the credit unions. As a result, more consumers nowadays prefer payday lenders than credit unions because they have shorter wait times and convenient hours. Unfortunately, the consumers pay a huge price by choosing payday lenders instead of the credit unions. Visit Swift Money, this is an example of a payday lender that provides small-amount loans to consumers with very manageable requirements like: minimum age of 18 years old, verifiable income and has a valid bank account. Also, they claim that they are an excellent option for those who have no credit or even with credit issues like foreclosure, bankruptcy that prevent them from traditional financing. Any consumer in need will be persuaded to borrow money from payday lenders because they do not have stringent requirements like credit unions do.