Fintech upstarts have turbocharged personal loans, now the fastest growing category of consumer debt, according to Experian. This type of lending was once mainly used by riskier borrowers without access to credit cards or home-equity loans. Now, whizzy smartphone apps, using a wider range of of data inputs, can extend loans to people who might not qualify based on traditional credit scores alone.

Companies like Affirm and Marcus (part of Goldman Sachs) pitch personal loans as an alternative to revolving credit-card debt. The segment has been driven by financial startups, which account for 38% of the personal loan market, up from 5% in 2013, according to TransUnion.

Read More.. Source Quartz

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