Lenders That Offer Instant Approval Loans

Video Transcript

"Hi, this is Matt McKillen with Innovative Financial Group. I had a question posed today about lenders that offer instant approval loans. Generally the way those work is that that lender is buying data from the three credit reporting agencies, Equifax, Transunion and TRW. What they've done is they've basically bought a model or criteria of a type of borrower they want. Usually, they're a home owner. They have a certain FICO score. They maybe have a very low percentage of debt, revolving debt, based on their high credit limits that are available on their credit cards for example. So they, buy that data and they feel that already you meet that criteria for pre-approval on a personal loan, and a lot of times they'll send or email you an offer to that extent. So, they are legitimate loans and again it's because generally you have a very good payment history on your prior credit that you've already established, and they are purchasing your data from the credit agencies to find you. So, it is a viable way to borrow money. Again, my name is Matt McKillen and I am with Innovative Financial Group."