About High-Risk Personal Loan Banks

Video Transcript

"This is Matt McKillen with Innovative Financial Group. The question posed to me today was regarding high risk personal loan banks. Well, I would say probably as a whole, there really are no banks that are doing high risk personal loans especially in today's lending environment. Traditionally, it was always what was called the finance company that would make those high risk loans. And when I say high risk, it just means that usually they're working with a borrower that either has lower credit scores; maybe had difficulty in proving their income. So it's consider a high risk to the bank to lend to that borrower. Now it doesn't mean that borrower isn't good for the loan or the payment, but, they're not just on paper as safe of a risk as maybe someone that's got 750 credit bureau score for example. Traditionally, the finance companies made a great living especially in the 80's and 90's by providing loans to that type of a borrower. Now the rate of interest was much higher. For example, it might be twenty, twenty two percent versus ten percent that someone at a regular bank would be able to achieve in a personal loan. So as it stands today in today's lending environment, I really don't think there are banks out there that are offering these types of loan products. Probably the best bet would be to seek out a finance company in your local town or community for that type of a product. Again, my name is Matt McKillen. I'm with Innovative Financial Group."