Braviant Holdings recently made the leap in to the personal loan industry, dishing out personal loans for up to $10,000 to consumers in California. The loans go through Braviant Holding’s Chorus Credit, a platform for online lending.
Braviant Holdings, based out of Chicago, is a financial tech company whose services are aimed at those who find themselves underserved by brick and mortar banks or other traditional lenders. This new service from Chorus Credit will go hand in hand with Braviant’s other business, Balance Credit, which offers installment loans. What’s the difference? Chorus Credit plans on lending greater loan amounts at better rates.
Fintechs Are Growing in Popularity
Fintechs like Braviant Holdings use technology to offer a better consumer lending application experience; they often tout themselves as a transparent, simple way to apply for loans or credit. Compared to many of the traditional lending institutions, fintechs offer people a much quicker answer to their personal loan needs, and there is often a quick turnaround after approval.
Years ago, when people wanted a personal loan, they would have to head to a brick and mortar bank, fill out the lengthy application form and potentially wait for days, possibly weeks, to find out if they would qualify.
But with the uprising of fintechs, consumers can now apply for online loansand find out quickly whether they qualify. They have revolutionized the personal loan industry. Consumers are taking notice of the changes too, giving fintechs more of their business that had been reserved in the past for traditional banks.
According to LendEDU, recent data show that fintechs are hoarding a larger percent of the market than they were just a few years ago. In 2010, they comprised just 1 percent of the personal loan industry. More recently, that figure has grown to almost one-third of the market.
In addition to quicker answers for loan applications, some fintechs also provide loans to those who may have been denied by traditional banks because of less-than-ideal credit ratings. These companies often claim to use other data aside from credit score to make lending decisions. That makes fintechs an attractive option for a subset of consumers who don’t want to go through the hassle of applying at a traditional bank only to risk the possibility of being turned down.
Chorus Credit prides itself on providing funds for more than just the cream of the crop when it comes to credit scores – they will also lend money to those in the near prime category. Those borrowers may look like a riskier clientele than those with perfect credit. But sometimes those consumers have had their credit impacted by a series of unfortunate events, such as medical problems, divorce, or unemployment.
“With our newly launched personal loan business, consumers can apply online anywhere, anytime to access a simple, convenient borrowing experience – perfect credit not required,” Thomas Ervesun, President of Chorus Credit, said in an article appearing on prnewswire.com.
Author: Andrew Rombach
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