Promise Gap will provide a payday loan alternative service. A typical payday loan could have an interest rate of 300% or more. The borrower could get caught in what is referred to as the “payday loan debt cycle”. This occurs when a borrower takes out more payday loans to repay previous loans and bills they could not cover. This is the “gap” Promise Gap will fill.
Our goal is to provide lending services to borrowers who have bad credit but don’t want to get caught in the payday loan debt cycle. We are working towards finding a solution that will keep interest rates well under the standard 300% with longer loan terms and more lenient restrictions. LendUp is one company that claims to offer this solution but was recently the target of a CFPB investigation.
We plan to bridge the gap between unreasonable and affordable loan options for people with less than perfect credit. Our projected launch date as of writing this is the first quarter of 2017.