Jun 13, 2013 Philip Burgess
Americans are expected to spend more on travel this summer, potentially creating more instances of identity theft.
When consumers have their personal information compromised, their financials could be tied up for a bit, and credit scores could take a hit, which may lead to a greater need for short term lending. On top of that, more summer travel could create higher demand for short term lenders.
Summer travel plans have increased 17 percent when compared to last year, according to the latest American Express Spending & Saving Tracker. Nearly 70 percent of consumers plan on taking a trip during the summer months, compared to 59 percent a year ago.
Americans are also expected to spend more on travel this summer, with 31 percent planning on spending greater than $1,000 per person on their vacations. The average expenditure per person is expected to be $1,145.
No matter how many preventive methods consumers take while traveling, there is always the chance that an identity thief could get ahold of their personal information. Should this lead to their credit scores taking a hit, short term lenders may seen an influx of borrowing applications as these financial institutions use alternative credit methods to approve applications.