Increase confidence in quick credits.
It seems that fast credits are becoming more and more fashionable. And this is demonstrated by the figures provided by the Capital Lender, in which it is observed that the amount of money lent through this method has been increasing progressively and at a very good pace for two years now. In fact, during the past month of June this year, quick loans have exceeded 40,000 million USD. According to the Capital Lender, it is the first time that these figures have been exceeded since 2012.
What is the maximum offer?
The maximum for this type of credit was reached in 2008, when they exceeded 60,000 million USD. Although for 2014 there was a considerable drop in this trend, which placed fast loans at an average loan of around 35,000 million USD, it is clear that the situation is changing upward.
This increase is directly associated with the rise in consumer loans that have been registered in the financial sector. The highest amount was established last June with a total of 724,000 million USD, the largest monthly increase recorded since 2008.
As indicated by the Capital Lender, this increase in the granting of loans is directly related to a slight improvement in the economy that has allowed confidence in loans to be restored, both by financial entities and users. Furthermore, traditional financial institutions increasingly request fewer requirements to grant a loan of this type, due to the economic recovery that already seems to be beginning to bear fruit.
What differentiates fast loans from those offered by traditional financial institutions?
Mainly, and as its name indicates, its speed. Speed that can be seen both in the granting of the loan (you can have the money in your account in a very short time), as well as in the requirements and documentation that is requested. It is not necessary to go anywhere in person, but it can be done through the internet dedicating a few minutes.
Another advantage of this type of credit is that, in addition to being granted in less than 24-48 hours, they can be accessed in most cases even while being in Financial Credit Institution.
Due to the few requirements requested to approve a loan, this type of banking runs greater risks than the traditional one. For this reason, commissions and interest are somewhat higher. In this way possible non-payments are covered. However, these commissions and interests make these types of loans very expensive on some occasions.
You have to be careful with this type of credit because their high interests may end up placing their users on a list of defaulters if they do not comply with the agreement when granting the loan.
Despite this, it is surprisingly revealing to see that the delinquency rate of this type of loan is much lower than that offered by financial institutions or other types of loans. While fast loans have a default rate of 7.07%, traditional banks today have a level of default of 9.44%. However, and despite the fact that delinquencies continue to exist, it is the lowest registered in both cases for more than 4 years. One more reason why credit granting has increased over time.