Requirements for Non-Traditional Loan Applications
It is possible to be turned down for a non-traditional loan. Most people think loans are granted to every applicant, which is not the case. Yes, it is easier to get a non-traditional loan because there are no thorough credit checks. Those who do not qualify for traditional loans can qualify for loans with non-traditional lenders, but there are no guarantees.
Most non-traditional lenders, such as Blue Trust Loans, require that applicants be at least eighteen years of age and have regular income. That can be a job, benefits, or income from other sources as long as the amount is consistent. An active bank account is required so payments can be automatically deducted.
There are restrictions that apply based on residence and other circumstances. Lenders do consider other payment obligations and will check to see if there are any loans from other non-traditional lenders that were defaulted on. Customers are not likely to successfully take out one loan to repay another from some other lender. It may be possible to do once, but the trend will be noticed quickly.
Failure to Pay Back a Loan
Lenders are less likely to allow customers to take out a loan if a previous one was not paid on time or in full. If the incident was years past and circumstances have changed, lenders may be willing to approve a loan. Expect interest rates to be even higher than normal. The amount and terms will be limited as well.
Reputable and experienced lenders will not approve a loan that will obviously be a hardship to repay. If the borrower’s income does not meet minimal levels, the loan will be denied. Most lenders are attempting to form lasting relationships with customers so they can be helpful more than one time. That practice means repeat business and higher profits for the lender.
High Approval Rates
It is true that non-traditional loans have much higher approval rates than those from banks and credit unions. Most applicants are approved, but not everyone can rely on this avenue in the event fast cash is needed. Applications are simple and fast to complete and can be completed online. Approval or denial is known in a matter of minutes or a few hours, so it is worth going through the process.