Bristol is a city in Sullivan County, Tennessee, United States. Its population was 26,702. Male and female share of the population is 47.7% and 52.3%, respectively. Median family income is $55,795. The rate above poverty and below it is 81.3% and 18.7%. Median house value is $121,500.
What are payday loans?
Payday loans Bristol TN are a short-term loan for a small amount, issued to the borrower without collateral and surety. The lender is obliged to provide the borrower with information on the amount of payments and terms before signing the agreement. For the early debt repayment, it has no right to charge a commission from the client if he notified it of his decision in writing at least 10 calendar days in advance.
Interest rates on payday loans in Tenneesse are overstated compared to bank loans and can go up to 700% annually, however, the maximum amount of interest charged by the lender from the borrower is limited by law.
How expensive is a payday loan compared to a bank loan?
The interest rate on a payday loan sometimes exceeds 1% per day. Such a small psychologically figure in annual terms is transferred into more than 700%. At the same time, 30-40% per annum are considered “predatory” for bank consumer loans. As you can see, the level of overpayment differs tenfold. A similar situation is found when comparing more close to the market average values of 1% per day and 20% per annum, respectively.
But keep in mind that most often bank loans are limited in terms of a minimum term (usually a few months, less often a month) and a minimum amount (for example, $50,000 or more). At the same time, early repayment often involves filing an application 30 days before the expected date of the transaction – during which there is no escape from interest. In such a situation, a borrower who needs a small amount for several days will have to take “extra” credit funds for a longer time. In this case, the overpayment may turn out to be higher than when receiving the required amount from the microfinance organization for the required term. It is worth considering the simplified procedure for issuing a loan in the latter case.
Payday loan issuing procedure
The procedure for issuing a payday loan online Bristol TN is quite simple. The first thing that needs to be done is to choose a bank, the working conditions with which are most beneficial for the consumer. The next step is to fill out an application on the website indicating contact information. Each lender determines a list of documents and mandatory survey items. The most common are: full name of the applicant, his residential address, date and place of birth, ID details, loan amount, contact phone number and email.
The financial institution offers options for transferring funds: transferring the loan amount to a debit account or a persnal account of the referral service. In the first and second cases, before signing the agreement, you should carefully study its terms.
How to qualify for a payday loan Bristol?
There are the following requirements to qualify for a payday loan in Tennessee:
- be at least 18 years old;
- be a U.S. citizen;
- be employed and have a reliable source of income;
- have a checking account;
- have a valid email address and phone number.
Benefits of online loans
Like any other financial product, online loan issuance has its positive and negative sides. The indisputable advantages include:
- prompt approval of the loan. There is no need to visit an office, and the time for paperwork is reduced.
- versatility. A payday loan Bristol Tennessee allows you to quickly resolve the issue with the purchase of an expensive product or payment for services.
- simple design. If you urgently need to take a loan out, then contacting the lender online in most cases occurs without guarantors and income certificates. Applications are processed as soon as possible, the message of approval is sent to the contact number of the applicant.
What does an online loan borrower look like?
The average online borrower has grown older: this year, the largest group was borrowers aged 25-34 (58.1% of the total number of borrowers). Borrowers under 35 received more than 70% of the total number of payday loans issued online.
The borrowers’ preferences have changed on the device with which an online payday loan is issued. If a year ago 37% of the company’s clients received online loans through smartphones, 56.5% – through a computer, and 6.5% – through a tablet, now the use of smartphones has increased to 56.9%, and personal computers and tablets have decreased to 37.9 % and 5.2%, respectively.
What clients are applying for payday loans online?
The average age of clients is 33 years. Most of the borrowers are in the 25-44 age group, but there are also older clients, including retirees.
Place of work
About 70% of the clients are qualified professionals, middle managers, individual entrepreneurs or company founders.
Computer or smartphone?
Over 80% of the clients apply for and pay for loans online using smartphones.
What are the purposes of payday loans?
The maximum loan amount is $2,500, and the average is . Usually, this amount is borrowed for several weeks before the next financial receipt – paycheck or pension. Most often, customers have unforeseen expenses – urgent purchases, equipment repairs, medical expenses, sometimes individual entrepreneurs need a small amount to replenish their turnover. In all these situations, you can get money online in just a few minutes, and it is much faster and more convenient than borrowing from friends or relatives.