Borrowers Split Between 'Survival Tool' and 'Risky Habit'

RadCred's survey uncovered striking contrasts in how Americans perceive short-term lending:

• 63% use short-term loans for emergencies
• 41% worry about recurring debt dependency
• 28% say payday loans are their only option when banks reject them
• 74% prefer online lenders for speed and convenience
• 52% of Gen Z borrowers consider short-term loans "normal"
• 82% support access to licensed, regulated lenders

The data reflects systemic financial pressure rather than reckless borrowing. As traditional bank lending tightens, digital platforms are filling the gap for millions of underserved borrowers.

Inflation, Financial Anxiety, and Rising Demand

Rising living costs, stagnant wages, and reduced bank approvals have pushed millions toward short-term digital lending. RadCred's findings show consumers increasingly demand speed without exploitation. The defining factor in loan choice is now trust- borrowers want transparency, fair pricing, and real alternatives to predatory payday lenders.

"Short-term loans can be both a blessing and a liability," said Alex Zadorian, CEO of RadCred. "Our study shows borrowers aren't reckless, they're reacting to systemic financial pressures. Our goal is to replace panic borrowing with transparent, AI-matched lending that improves outcomes."

Borrower Sentiment Reflects Demand for Fairness

The survey reveals borrower sophistication: people need credit access but demand fairness, clarity, and real choice. Respondents overwhelmingly favor licensed lenders (82%) and are increasingly comfortable with AI-driven platforms (68% willing to use algorithmic matching).

"Borrowers want speed without exploitation," said Lisa Mendez, Head of Consumer Insights at RadCred. "Our platform makes that choice available."

Borrower Perception Highlights

How RadCred Is Redefining Responsible Borrowing?

RadCred's AI system evaluates over 100 data points- income stability, employment history, and spending patterns to match consumers with licensed lenders offering fair terms and transparent schedules. While payday lenders rely solely on credit scores, RadCred

Platform features:

• Licensed U.S. lenders only, vetted for compliance
• Soft credit checks to protect FICO scores
• Same-day funding for qualified applicants
• Transparent APRs and clear repayment timelines

The survey data suggests a market opportunity for platforms like RadCred that prioritize transparency and regulatory compliance. Borrowers increasingly choose lenders based on trust, a factor built through clear terms and licensed partnerships.

About RadCred

Founded in Glendale, California, RadCred is an AI-powered loan marketplace connecting borrowers with licensed lenders offering personal, installment, and emergency loans. Using alternative data and real-time analytics, RadCred expands credit access for all backgrounds while promoting ethical lending and financial education.

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Disclaimer

RadCred is not a direct lender and does not make credit decisions. Loan terms, rates, and approvals depend on individual lenders and state regulations. This release is for informational purposes only. Consumers should review lender disclosures and ensure compliance with state lending laws before applying.