Analysts: Online Firms Offering Bad Credit Loans Remain Strong

September ends with some excellent news for the economy. Month-end reports show that US retail sales rose last month primarily because of the contribution coming from the households. The major sectors of the economy that have seen a great leap are the auto and electronics industry. But aside from the better spending data, there could be some other factors that may contribute to the current health of the US economy. Among these would be the increased employment rate and the growing business inventories.

In fact, the details of the said September report show that there has been strength in sales specifically on the areas of automotive, gasoline and building materials. Meanwhile, electronic sales went up by 4.5 percent. There are analysts that contribute this increase to the recently released iPhone model.

Other temporary factors are doing well too. For instance, food and beverage sales have gone up by 1.2 percent while gas prices went up by 2.5 percent. All in all, consumer spending rose by 0.9 percent just last month.

The Commerce Department says that the month-end report of consumer spending for the month of September is 1.1 percent better than what was previously forecasted. An economist says that the stable rise of the economy is adequately backed up by the month-end reports since July. As such, economists have learned to raise their expectations for this year’s last quarter by 1.9 percent.

Economic growth is something that has been quite difficult to attain since the start of the recession. Jobs were slashed and unemployed workers struggled just to put food on the table. Meanwhile, even those who have escaped the massive layoffs still needed to look for other sources of money especially during times of great distress. It is this established need that pushed online firms offering bad credit loans to emerge.

Economic Growth and the Lending Industry

The lending industry began to flourish when the economy hit recession. This is because consumers need to seek external help in order to keep pace with the increase in the prices of commodities. But since the general creditworthiness has declined, it is important that you find an alternate lending firm that does not judge you based on your credit score. Hence, the online bad credit loans industry was born.

But with the bettering economy, does it signify the end of the online bad credit loans industry too? Financial analysts think that it will not be the case. Analysts explain that bad credit firms are adjusting their guidelines based on the strength of the consumer’s need for their business. That is why you will see bad credit loans verifying on employment instead of using the credit score. So as long as more people are employed, more will be eligible to use the services.
In addition, firms offering bad credit loans are reviewing the interest rate that they offer as well as their policy on non-payment in such a way that would benefit you. The best firms even do self-evaluation in order to come up with the best plans for their consumers. Today, you can only get up to three loans from nontraditional lenders in a year.