Over the last few years, a change has occurred in the United States around borrowing and personal loans (online and at the bank). Until recently, while people didn’t think twice about racking up credit card debt, personal loans or payday loans were considered to be the very last option for expenses like home repairs, business opportunities, or unplanned expenses. Today, though, that’s all changing.
Quick Loans and the Rise of the Personal Loan
According to the Chamber of Commerce, personal loans have doubled over just the last few years — going from just over $70 billion to more than $140 billion at the beginning of 2021. And as of this writing, there are currently 21.1 million active personal loans in the United States. Some of the most common reasons that people apply for quick loans include:
- Credit card refinancing
- Home improvements
- Debt consolidation
- Major purchases
- Medical bills
- Car financing
So, who’s responsible for the increase in demand for personal loans online? Based on recent statistics, Gen X borrowers have the highest average loan balance at almost $10,000. But, while Gen X may be borrowing the most, Gen Z actually has the highest delinquency rate, making Gen Z borrowers the least likely to pay back a personal loan.
Online Loans: An Alternative to Unsecured Personal Loans:
The loan ecosystem in the United States has certainly changed over the last decade, and more people are looking for new ways to finance their projects, business ventures, vacations, and large purchases. As borrowing trends shift, the lending industry must adapt as well — especially with the prevalence of borrowers seeking a loan online.
Further, unsecured personal loans aren’t always accessible to all people, as they are typically unsecured and therefore require the borrower to have good credit. With an asset-secured loan, you don’t have to worry about credit scores or other outstanding debts. You can simply receive a loan for the worth of your valuable item(s) to fund business ventures, home renovations, gifts, and more. Find out more about how instant loans work with Fundz.