Loan approvals are becoming easier to get thanks to a new way banks look at your credit. The days of getting the instant declined are changing. Phew!
Take auto loans for example. Even as recently as last year, many consumers weren’t able to qualify for car loans because of the financial credit collapse. It’s not like it was ten years ago when we all received our bills and paid them on time. A recent research study done by a leading Wall Street firm has released new data why.
Consumers are spending an average of $186 per month on technology. Remember, just ten years ago the average was $39. Next, fuel and heating costs have risen 212%. So when you add in these two household expenses on top of lower wages you get a recipe for disaster.
It’s no surprise lending institutions have re-formulated loan criteria. One of the newest trends is guaranteed loans. They come with few requirements but have made getting a loan for millions of people much easier. A typical borrower only needs to show proof of income for the last three months. Then put down 5-10% cash to get approved.
Loans come in all sizes; for homeowners looking for cheap loans to finance mortgages, there are many programs available. Don’t forget interest rates for fifteen and thirty year mortgages are at the lowest rates since the 1920s. Even folks struggling with poor credit ratings are beginning to see approvals stamped on their loan applications thanks to recent changes in the fair lending laws.
Quite interestingly, even part-time workers are beginning to experience more freedom shopping for loans. A bank outside of Tampa, Florida made the news recently by offering flex-payments on loans up to $5000. Borrowers can choose rolling payment due dates which makes timely payment planning a snap when you’re on a tight budget. The concepts of flex-payments are becoming popular with credit card loans throughout the country.
In the last two years, we’ve seen lenders who practically shut down their loan departments become more aggressive in finding new borrowers. The signs are everywhere our economy is beginning to recover based on the loosened lending laws. Even people who have suffered job losses can now apply for loan consolidation plans to lower their monthly payments. When your short on money, short-term bridge loans make the most sense because they help you stay in your home while you’re searching for new employment.