Getting payday loans online is now faster and easier than ever. Online application forms make the process simple and stress free, with most companies providing convenient mobile friendly websites to simplify the process that little bit more. Most loan providers will be able to respond to your application request almost immediately, with the funds deposited in your account hassle free if the application is successful.
Payday loans are short term loans, intended to help with any financial strain until payday. They are unsecured loans, which means they require no collateral such as a house, car or business – making the payday loan industry highly attractive to many people. Borrowing money and buying goods on credit has been around for many years, but how did payday loans online come about, and develop to become the industry it is today?
History of payday loans online
If you try and search for the origin of payday loans online, you will certainly be faced with a number of different theories, ranging from interest rate controls in the 1980s, right back to loan providers during the Great Depression. So it is difficult to pinpoint exactly when it all began. But what is certain, is that general attitudes to borrowing have changed dramatically over the years. During Victorian England, it was illegal to owe money, meaning a great number of people ultimately ended up in a debtors prison. Thankfully the law has now changed, and owing money is no longer an issue. In fact, over a million people take out payday loans online each year in the UK.
Moving on towards the 1940s-1950s, buying goods on credit was simply not an option. Shopkeepers would provide an early example of payday loans in the form of supplying shopping on credit until their pay date, but short term loans were not yet available. Hire Purchase Agreements made an appearance in the 1960s which paved the way for payday loans. Initially, goods were only allowed to be bought on credit by men over the age of 21 – equal rights acts implemented throughout the years since, has meant both men and women can now buy goods on credit, and take out payday loans equally without discrimination.
In the early days of credit purchases, only houses and household goods were available on credit. Whereas now, the variety of goods has increased massively, and payday loans can be used to pay for many different products and services.
Though all of these credit options paved the way for payday loans to come to fruition, it wouldn’t have been possible without the introduction of the credit card. Barclays put their credit card on the market in the mid 1960s, which allowed customers a greater financial freedom. Accessing a credit card can be a difficult process, so a great alternative may be looking into payday loans online.
In previous times, pawn shops and loan shops were the go to place for someone to visit to keep themselves afloat until payday. During the Great Depression, pawn shops became the only way for people to come by money, as the banks were failing and the only way for people to get cash was to visit pawn shops and exchange their personal items for money. After World War 2 there were allegedly more than 5000 pawn shops in the British Isles and Ireland – this figure has since decreased dramatically, as improvements to technology mean getting payday loans online is now far easier, and more convenient than visiting a pawn shop.
Pawn shops require the customer to provide a particular product as collateral for the loan, such as jewellery or electrical products. If the loan is not paid in full by a particular date, the goods become the property of the shop owner, who then sells the products on to cover the cost of the loan. This is yet another reason why obtaining payday loans online is becoming ever increasingly popular, as short term loans are unsecured.
What to look out for
If you are looking to get payday loans online, be wary of rogue lenders. If a loan provider offers bad credit loans or loans for people out of work – consider shopping somewhere else. A good, reputable loan provider will carry out background checks on their customers before approving a loan – these checks allow the company to ensure the borrower will be able to repay the full loan amount, without entering into more debt.