Despite all the reports and rumors, mostly from financial experts, about bad credit loans bringing credit consumers to hip-deep debt, experts believe that these loans may be a surprising solution and means to improve the US economy. The economy in the US is yet to recover from the financial turmoil that started in 2008, aggravated by more than 33% individuals seeing their credit scores drop. Rigorous loan requirements have also shut out many credit consumers with bad credit. With bad credit loans, however, it is not only credit consumers who get to benefit but also the US economy.
Bad credit loans and their impact on the economy
According to Yonni Rossa, chief executive officer of Loans.net, one of today’s trusted providers of bad credit loans, “Having access to instant bad credit loans would help give the much-needed boost to the economy. Individuals can now freely obtain cash advance loans and take care of their purchases or make some short-term business investments.” Rossa adds that the spending patterns that consumers of bad credit loans make will help improve the economy.
Also, even before the economic recession, a comprehensive study conducted by IHS Global Insight revealed that in 2007, the industry contributed about $10 billion in the US GDP and provided 155,000 jobs on a national level with $2.9 billion in labor income. On top of these, the industry generated over $2.6 billion of taxes in the federal, state, and local levels in that same year.
Bad credit loans and their impact on credit consumers
Bad credit loans have also provided more opportunities for consumers with bad credit to borrow money to use not just for financial emergencies but also to make big purchases, for example acquiring auto loans.
Melinda Zabritski, Experian Automotive’s director for automotive credit, says “A few years ago, it could have been much more difficult to get an auto loan.” But times have changed, and everyone, even those with bad credit, can purchase their dream car through an auto loan.
The best thing about bad credit loans is that these can be easily acquired online, with some online agencies, including Loans.net, offering a tool that enables credit consumers to connect with several bad credit loan lenders in one simple form. Rossa adds, “Online loan sites offer hope and access to non-traditional lenders in a way that would have never been possible in a traditional setting.” With these loans, credit consumers only need to spend five to ten minutes filling up an online application form, and there is no need to fax supporting documents, nor a need for collateral to secure the loan.