In the current study, loan consolidation study company reviewed an applicant’s age, loan purpose and amount, credit quality, employment status and yearly income. One in four personal loan applicants chose debt consolidation as the main reason for requesting a new loan. Other top reasons were for household expenses, auto costs and healthcare bills.
A professional real estate investor was surprised that borrowers requested mostly low amounts. This investor said the small figures show that borrowers use the funds such as to stop gap their finances. Borrowers are taking loans for consumption rather than revenue producing events, investor said.
Small consumer loans are taken out daily across the country, but the identity of those borrowers is often stereotyped, assumed, and generally unknown. In a unique study from loan consolidation study company, demographics of personal loan applicants were analyzed. One of the most significant finding from the research was the fact that over half of borrowers have poor credit scores. Despite having low credit scores, almost all applicants have some form of employment.