Due to the financial issues of some Americans, they are unable to get loans from banks and they seek the services of large stores, such as Costco, to meet their needs.
Norma Garcia, a senior attorney for Consumers Union, told NPR that this is the "sign of the times" and retailers are catering to the growing needs of their consumers.
"What we have seen is that the protections vary considerably," she says. "It's not always apparent to the consumers what the risks might be with that product. In some cases there are activation fees, [or] there are dormancy fees if you don't use the product for a certain period of time."
A recent report by the Federal Deposit Insurance Corp. stated that more than 8 percent of U.S. households avoid traditional banks altogether.
No matter if the loan is from a bank, or Costco or Target or even the corner Deli, make sure you are prepared for this important, life changing decision.