3 Ways the Credit Industry Is Changing How We Apply for Loans

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3 Ways the Credit Industry Is Changing How We Apply for Loans

Post Series: CREDIT HELP

If all goes as planned, you will soon be able to apply for credit by sending a text.

Experian, the credit bureau, recently announced what it calls a “groundbreaking innovation.” It isn’t mainstream yet, though several lenders and card issuers are involved in a pilot program in which consumers can initiate and complete a credit application process within minutes by sending a text message.

Still, while one could argue this new way of applying for credit is groundbreaking, it’s really just a natural progression of the loan application process, which has been evolving ever since the internet took off. In fact, so much has changed in the loan application world that it’s worth reviewing key milestones, as well as what could be coming down the pike.

Lenders are aiming for more accuracy on whether you can pay them back. This could be wonderful – or terrible – news for you. It all depends how you view the lending experience.

Earlier this year, Steve Smith, CEO and co-founder of Finicity, a Salt Lake City-based financial data aggregator, announced a partnership with Experian. The two companies are coming together to develop new technology that analyzes a borrower’s cash-flow data to determine whether he or she is eligible for a loan.

This could work well for many people, Smith says. “This will be beneficial to those consumers that are thin-file or no-file for credit scoring, but are otherwise completely capable of managing a loan,” he explains.

If you are interested in getting your credit back in line, contact the Attorneys Justin Clark & Associates and learn about your possibilities today.

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