This name is relatively new though it denotes the loan which people have known and employed for a long time. Its history started with the monetary history, so they are equally old.
Payday loan history
No one can say when actually payday loans became popular in the USA but their first official mentioning was in 1959. In that year the Senate passed the bill according to which people were permitted to receive small sums of money as short-term loans in urgent situations. The bill was to help all those people who because of different reasons could not apply for regular loans. Those reasons included bankruptcy, bad credit and so on. Those loans were called check cashing loans in those days and people could get them in person only (transactions via the Internet became popular much later). In the 90s payday lending enjoyed its greatest popular in the 90s. To be more precise, it happened when in July in 1996 the Senate legalized them.
Online Payday Loans
The business of payday lending has prospered even greater since the appearance of the Internet. Earlier the only option was check cashing and it was acceptable enough. The only drawback was that in order to receive the cash it was necessary to go to a loan store. Then online companies appeared and made the whole procedure much easier and simpler. Now there isn’t any necessity to leave of your home. It is really very convenient, if you have Internet access. The money is transferred electronically straight to your bank account, no wonder payday loans online enjoy such a great popularity.
Though it is rather convenient, one should be careful, of course, as the risks in such financial operations are not excluded, as well as high interest rates shouldn’t be undervalued. However, despite these drawbacks, in many cases payday lending is not only helpful, but really beneficial. Just consider your financial potential for repayment and try not to overestimate it. And one more thing – do not turn to such a solution very frequently.