Sara Routhier, Managing Editor and Outreach Director, has professional experience as an educator, SEO specialist, and content marketer. She has over five years of experience in the insurance industry. As a researcher, data nerd, writer, and editor she strives to curate educational, enlightening articles that provide you with the must-know facts and best-kept secrets within the overwhelming world o...

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Joel Ohman is the CEO of a private equity-backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He also has an MBA from the University of South Florida. ...

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Reviewed by Joel Ohman
Founder, CFP®

UPDATED: Aug 21, 2012

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To say that times have recently been tough is an understatement. Many Americans, including college graduates, have lost their jobs or been forced to settle for jobs with low pay. In order to purchase necessities or pay for emergency expenses, many people have borrowed no credit payday loans.

As their name suggests, no credit payday loans are cash advances that require no credit checks and have no credit score requirements. While this can seem attractive to people with horrible credit, there is a price to be paid. No credit payday loans carry high interest in order to cover the risk of lending to borrowers who have horrible credit histories.

Despite charging high interest on loans, the cash advance lending industry continues to make massive profits and has actually grown in size.

Payday lending has proven to be a profitable business with enterprising presences both online and in physical store locations. A closer look at the myriad of lenders shows that cash advance lending holds few signs of shrinking.

Online Lenders

Online payday lending is gargantuan in scale. Various lenders offer their services online. However, like most things online, there is little to no oversight of online cash advances. The massive market exposure offered by the internet has given rise to lenders crossing state lines, and even international waters, despite some state governments banning these products.

Many online lenders simply lend to whoever they can, regardless of state laws that prohibit cash advance loan operations from lending within their borders.

Brick and Mortar Lenders

Payday loan retail locations, or brick and mortar stores, are often offices and buildings where prospective borrowers can physically visit to borrow no credit payday loans.

Brick and mortar lenders are sometimes franchises or chain stores, but some are stand-alone establishments.

Commonly stigmatized as being seen only in low-income areas, brick and mortar lenders typically face the brunt of regulation, which includes zoning laws and interest rate caps. In contrast to this, their online counterparts can generally skirt regulation.

Companies and Corporations

Brick and mortar lenders may be independent businesses but there are far larger lenders at work in the industry.

Titans like Cash American International, Check into Cash, Advance America, and many others are publically traded companies that generate millions in annual revenue. In addition to operating thousands of retail no credit payday lending locations across the country, these corporate giants also have presences online.

In effect, these massive companies are the Walmarts, the McDonald’s, and the Coca Colas of no credit payday lending.

Being companies of such sizes, the lobbying power of these corporations is nothing to scoff at.

Tribes Rush In

The rush to lend through online means has not been isolated to companies and corporations. Indian tribes have also noticed the veritable “gold rush” to lend money at high interest rates.

Taking advantage of their sovereign legal status, Indian tribes have begun operating no credit payday loan companies within their reservation borders, allowing them to avoid laws in states that regulate the industry. These same regulations often hinder or outright ban the operations of non-tribal cash advance loan companies.

Tribes, immune to prohibitive laws, have grown so profitable that they have attracted the attention of many lenders who wish to partner with them. These “partners” include lenders who have been “chased out” of other states by restrictive regulation.

Cash advance lending has only been rising, which is possibly a sign of economic distress despite the government’s claims of job growth. Lenders who are innovative and hungry for profit will continue to prosper and grow. As lenders evolve to survive in the industry, borrowers may very well see app-driven cash advance loans and text-based cash advance lending in the coming years.