Although our FICO
score defines us in many aspects of our lives, payday loan lenders have taken
the demand for credit worthiness out of short-term, small-dollar loans by
offering no-credit-check loans
While
non-traditional payday lenders are among the few who don't look at your credit
history before approving you, traditional lending institutions are moving
further away from the "FICO score only" mentality and turning to
other means of judging a consumer's credit worthiness.
Consumer
information given to payday loan lenders for the use of applying for a loan
includes the applicant's checking account, employment, and income information.
Most lenders will ask the applicant to provide references, whether personal or
professional. That minimal amount of information is all it takes to approve
someone looking for a fast and temporary loan. A step up from that is an auto
title loan lender who uses the collateral of the consumer's car in which to
loan upon.
Due to a
recession that has left millions of consumers in the position of losing their
homes and jobs along with their credit rating, lenders are turning to
non-traditional data in an effort to identify those consumer's who's FICO
scores have taken a beating in the recession. Many of those people are normally
good at handling their credit but have fallen victim to their circumstances.
Credit card
issuers are looking to different ways to assess someone's credit worthiness
including considering one's rent, utility, or cell phone payment history. With
15 million consumers having their credit scores affected negatively as a result
of the recession, a traditional credit score may not evaluate the state of
their credit worthiness now that they have moved on.
ไม่มีความคิดเห็น:
แสดงความคิดเห็น