2.2. The Credit Profile of Cash Advance Borrowers
A critical presumption in this paper is the fact that cash advance borrowers already have credit documents and credit ratings that may be affected (indirectly) by pay day loan use. Current evidence demonstrates that pay day loan borrowers do certainly run when you look at the conventional financial system, which will be maybe not too surprising provided pay day loan borrowers needs to be used and have now a bank account to be eligible for the mortgage. As an example, Elliehausen and Lawrence present survey evidence that payday borrowers additionally make an application for and employ old-fashioned types of credit (bank cards, auto loans, etc.).