Glendale, CA, Nov. 04, 2025 (GLOBE NEWSWIRE) -- RadCred, an AI-powered loan platform, today released findings from its latest borrower survey. The research reveals Americans are sharply divided on short-term loans: 63% use them as emergency financial bridges, while 41% worry about falling into debt cycles. The survey of 2,800 U.S. respondents shows access to transparent, fairly priced lending remains limited for low-credit consumers, a challenge RadCred's AI-driven matching addresses by evaluating applicants beyond traditional credit scores.
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 like medical bills or rent
- 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
| Borrower Perception | Percentage |
| Short-term loans as "lifeline" | 63% |
| Concerned about debt cycles | 41% |
| Prefer online over storefront | 74% |
| Support for licensed lenders | 82% |
| Willing to use AI platforms | 68% |
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 helps borrowers find flexible loans that support long-term credit rebuilding.
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.
Visit www.radcred.com | Media Contact: support@radcred.com
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.
