The reason: they're installment loans rather than revolving accounts.
The difference between payday and installment loans can seem trivial, but there are important distinctions.
Included are payments on credit cards, retail accounts, installment loans, finance company accounts and mortgage loans.
Almost 60percentt had mortgages, while about half had installment loans, like those for cars.
Second, they are similar to installment loans, lasting no more than 10 or 15 years.
Installment loans (autos, mortgages and student loans, for example) are less indicative of elevated credit risk, thus the small impact.
"Short-term installment loans like ZestCash loans are not the cheapest way to borrow money," the site explains.
In contrast with higher-cost payday lenders, Springleaf offers installment loans that typically are larger and last longer.
For example, payday lenders have recently shifted into larger installment loans, which get paid back in increments over time.
"These strong proposed protections would cover payday loans, auto title loans, deposit advance products, and certain high-cost installment loans".
With installment loans, which are also ubiquitous in Georgia, people pledge their possessions home furnishings, old VCRs as security.
