Why Do Consumers Turn to Small Dollar Credit (SDC)?

Small dollar credit products (SDCs) refer to potentially high cost financial products such as payday loans, pawn loans, auto title loans, and deposit advance loans.  The Center for Financial Services Innovation released a report that explores why consumers would choose these products.  The report, Know Your Borrower: The Four Need Cases of Small-Dollar Credit Consumers, identifies four primary consumer need cases in the SDC market, each representing distinct borrower profiles and different uses of small-dollar credit.  These profiles offer a new framework for understanding the possibilities to expand SDC services and underscores the need for high quality products that meet the needs of these consumers.   An infographic captures the key findings of the study.