Jul 03, 2013 Sean Albert
Over the past few years, people in nations across the globe have been plunged into financial turmoil because of the Great Recession. Many individuals were laid off, then found the job hunt exceedingly difficult, all while dealing with increasing bills and inflation. As a result, many had to forego things like car or insurance payments, and their consumer credit scores took a large hit.
Now that worldwide economies are starting to pick up again, those who were set back in the last few years are having trouble keeping up. Many traditional lending companies and banks won't lend to people who have subprime credit scores, so how are they supposed to get back on their feet?
A lot of individuals are seeking out sources of alternative finance. Short term lenders have seen a boon in business since the economy took it's first dip in 2008, and this is continuing despite the comeback. In fact, in a sign of the times, many borrowers are contacting these organizations online, taking advantage of new technologies to enable loans.
Can help those with less than stellar histories
Short term lenders are exceedingly helpful for individuals who have exceptionally low credit scores. We all go through tough times, and leaders at these organizations know that a subprime traditional score isn't always reflective on the creditworthiness of a borrower.
That's why many of these companies take into account different ranking systems. For instance, the Payment Reporting Builds Credit method is becoming increasingly popular with lenders - they can come up with a different score by incorporating other fiscal data, like a person's propensity to pay utilities bills on time.
Many industry experts think that this factor, among others, make short term loans the ideal option for those with bad credit as a result of the recent economic troubles.
On top of being a great option for those with potentially detrimental credit histories, when short term lenders are employed over the Internet, many individuals have found that they are approved markedly faster than would be the case with a financial institution.
Many of these Web-based businesses tout that they offer almost instant approval of applications. The reality is that within a few hours of contacting a number of these online companies, employees will have reviewed forms and either approved or disapproved the amount. Money tends to be deposited that same day if given the green light.