One of the most common questions we hear from credit union and bank executives is “Are payday loans good or bad?” Payday lending has a very negative reputation, but we’ve found those who irresponsibly use small dollar loans are the exception, not the rule.
The reality is that consumers use QCash loans to meet all sorts of needs we never imagined. At the core, they are looking for quick decisions, without judgment, and fast fulfillment to get them out of an embarrassing or unexpected situation.
Payday Loans Good or Bad: Emergency Vet Bills or Unplanned Textbooks
For any situation in which borrowers are in need or experiencing a family crisis, QCash can help. Two of our borrower’s most common needs are emergency vet bills and kids are starting school. In particular, oftentimes parents are helping send their kids off to college and encounter textbook sticker shock or face other unexpected expenses. In any case, borrowers need money quickly. QCash allows them the freedom to take out small-dollar loans in an easily accessible and user-friendly way.
QCash also gives credit unions and banks a means to provide small-dollar loans to their customers in a way that uses technology to make the transaction efficient and confidential.
Payday Loans Good or Bad: Predatory Rates
Without QCash technology, these consumers aren’t using credit union lending options to meet immediate or embarrassing borrowing needs; instead, they are going to payday lenders or car title lenders, where they paid unreasonable fees. These lenders charge predatory rates and fees because they know borrowers are under duress and are willing to pay whatever it takes to get funds fast. WSECU analyzed member borrowing data and determined QCash could substantially help members by speeding up the process, lowering rates and delivering a CFPB compliant solution that meets modern consumer experience expectations.
QCash not only saves consumers money, it grows credit union and bank customer bases and reinforces brand loyalty. And, borrowers are more likely to repay their credit union or community bank over payday lenders.
Payday Loans Good or Bad: QCash Advantages
QCash small-dollar loans provide borrowers with a reasonably-priced, fast and confidential financial safety net for when life sends an unwanted financial burden their way. That’s something we’re very proud of and we’d love to share this solution with more caring community lenders!
April 19, 2018
By Heidi Tinsley, QCash Program Director
Why did WSECU start offering small dollar loans?