35% of the population now has a FICO score below 650

According to a blog post on Mint.com today by John Ulzheimer, President of Consumer Education of Credit.com and the author of the book “You’re Nothing But A Number", over 35% of the population in the United States now has a FICO score below 650. As stated in the post, that 650 score break is meaningful because in today’s financial services environment many lenders and insurance companies consider the +/- 650 point to be the dividing line between prime and sub-prime. What this means is more consumers are going to be denied or adversely approved (that means you’re approved for a loan, but with punishing rates or terms), and scores that are trending lower will continue to do so for many years to come. This reinforces the fact that the market for consumer financing is very challenging and looks to remain that way for years to come. Approval rates for conventional customer financing look to remain very low and terms for those lucky enough to qualify will be expensive. What we have seen is a gradual increase in the number of subprime lenders coming into the consumer financing market to fill part of the gap being left by conventional lenders. Unfortunately, even with these two sources of external financing approval rates are still well below 50% and terms are expensive for the borrower. ExtendCredit.com works with many conventional and subprime lenders because we complement their lending programs. For their business customers, ExtendCredit.com solves the problem of low approval rates by enabling these businesses to offer their own internally funded payment plans. Because ExtendCredit.com automates lending best practices and offers the business instant credit and fraud verification, repayment risk can be minimized while generating needed sales for [...]

2016-10-29T16:36:45+00:008:05 am|

Close the Gap in Your Customer Financing Picture

Businesses across the United States are looking for alternatives for customer financing. Conventional financing programs are not meeting the need. Approval rates are at an all time low as only the most credit-worthy customers qualify for conventional financing. Fewer and fewer services even qualify for conventional financing. All too often, when conventional financing is available, you hear stories about customer complaints that it is really expensive. These are signs of the times. The economic crisis is still with us and the situation will not change any time soon. The harsh reality for businesses that use conventional customer financing is that business and revenues are significantly lower than in the past. So how do you close this gap and build your business and revenues back up in these challenging economic times? Extend your own credit in the form of payment plans to your customers as a complement to conventional financing. This approach provides choices for you and your customers. If conventional financing programs are only approving 15% of customers that apply for financing, then offering your own payment plans can close that gap and increase approvals to more normal levels. If conventional financing programs will not cover certain procedures or types of transactions, then offering your own payment plans can generate sales that would otherwise be lost. As a business owner, you see the benefit of offering your own payment plans, but you do not have the infrastructure, resources or experience to manage them. You may have even tried offering your own payment plans in the past and struggled with juggling spreadsheets and the time consuming and error-prone manual processes involved with this approach. This is where ExtendCredit.com comes into the picture. ExtendCredit.com provides businesses with [...]

2015-06-08T18:57:56+00:008:59 am|