Why Are Online Short-term Loans Given to “Unreliable” Borrowers?

Each person, after applying to the bank for a loan and receiving the necessary amount of money, begins to form his own credit history – his business card and reputation to show to financial organizations in the future. On contrary on a standard bank loan, which is quite strict and complex, things are easier when it comes to a payday loan. Getting a short-term loans is very simple today, even if you have a bad credit history. Microfinance companies rarely pay attention to the past financial cases of a person and are ready to cooperate with even the most unscrupulous clients.

Pros of Applying to Microfinance Companies

In the conditions of tough competition, microfinance companies are gradually reducing their payday loan rates and offer their customers a variety of bonuses. Despite large overpayments and high rates, people continue to turn to payday loans organizations. This is due not only to the simplified process of registration, but also to the fact that they rarely refuse and are ready to issue payday loans to people that seem to be “unreliable” borrowers.


  • To submit a loan request from the microfinance company, there is no need to confirm your solvency, provide a bundle of documents, search for guarantors, etc. Such conditions are often set by banking institutions.
  • In case of late loan repayment, banks immediately add negative information about the borrower to his credit history. Everything is simpler with microfinance institutions – they are loyal to the small delays or postponements of the repayment period.
  • As for the documentary side, a passport is usually enough for a borrower. It is very rarely that you may be asked to provide an “extra” document serving as an additional identification of the person.
  • If your credit history is not flawless, then taking small amounts from a microfinance organization and paying them on time will gradually improve your reputation. It is important: if you pursue this goal for lending, check with the company’s employee if they cooperate with the CII.

How to Apply for a Loan?

You can apply for a cash advance at a credit institution without leaving your home. It is not necessary for you to go to the bank and spend time in the queue. It is easier and faster to get a loan through the Internet, especially if you have a bad credit history. You just need to open the website of the financial organization or bank you are interested in, check the programs it offers or urgently leave a request for consideration. Fill out the necessary form and wait for the approval.

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