The irony of loan industry is that those who don't really
need them -- rich and stable individuals -- can get them easily while those who
are in desperate need of funds -- the not so well-off -- often get denied. Fortunately,
the types of credit available have diversified over the years and payday loans
have emerged to provide a necessary lifeline to people who might not have any
other option.
A payday loan is a form of micro loan -- that is, it's a
very small amount of money given by lenders to marginalized persons. Applicants
need not have a stellar credit record nor provide substantial collateral just
to get an approval. For this reason, those who currently have low credit scores
flock to payday lenders when financial emergencies arise like medical expenses,
household bill deadlines, tuition fees, and the like.
