Dec 03, 2012 Sean Albert
Prepaid cards allow the consumer the freedom of carrying a card without the rolling balances owed to creditors. Prepaid cards are often verified or issued in conjunction with a major creditor and can be used in many retail and online locations. Consumers load funds onto these cards and have the ability to add to the balances. Some cards even have the capability to be linked with PayPal to simplify online verification and transactions. Pawn shops
Pawnbrokers often work under the principle that cash is king. Unbanked individuals or those who may not be able to qualify for new or extended lines of credit may turn to short term lenders in Pawn Shops. Consumers can pawn goods against cash loans under stipulated conditions and purchase their items back in a given period. Some brokers buy directly from the client and re-sell merchandise at a retail space in the store. Pawn shops offer an alternative to traditional lines of credit where clients can quickly access cash. Due to the rising delinquency and increased balances on credit cards as reported by Trans Union, it seems that professional lenders have a significant opportunity as to developing methods of attracting unbanked individuals or those seeking credit outside of the traditional methods. New products and services can be developed to cater to the needs of this increasingly large population of Americans.