Utilization of financial organizations

Participants reported reduced use of conventional services that are financial the standard Canadian. Footnote 31

As an example, just 35 % of participants reported access a credit card, when compared with 87 per cent of Canadians generally speaking. Footnote 32 Only 12 per cent stated they’d a relative credit line, in comparison to 40 per cent of Canadians. Footnote 33

Participants identified a few grounds for perhaps not credit that is accessing a bank or credit union:

  • 27% stated a credit or bank union will never provide them cash
  • 15% stated they would not have time for you to get financing from a bank or credit union
  • 13% stated they failed to want to get cash from a bank or credit union
  • 55% stated payday financing offered the most readily useful customer care
  • 90% stated payday lending ended up being the fastest or most convenient option
  • 74% stated payday financing ended up being the smartest choice open to them

Notably, 35 % stated they didn’t have use of a banking account during the time of their final payday loan. This will be striking, considering that 99 per cent of Canadians in 2014 reported access a banking account. Footnote 34 Further, payday loan providers generally insist upon pre-authorized usage of a bank-account before agreeing to provide up to a customer.