APPLY NOW!
Just let us know how much you need.

We will send your request to 300+ Direct Lenders - it's much faster than applying individually to each lender.

Applying doesn’t affect your credit score!

By submitting your information you claim you have read and understood and agree to Privacy Policy, Terms of Use, Responsible Lending and Marketing Practices

Easy access to cash
advance creditors!

The main reasons for young adults to turn to Personal Loans

Apply now

3 easy steps

  • 1 Submit Online
  • 2 Fast Lender Approval
  • 3 Cash in Your Account

The main reasons for young adults to turn to Personal Loans

The main reasons for young adults to turn to Personal Loans

At the moment, personal loans have become the fastest growing consumer debt. Borrowers are getting younger. Compared to 12% in 2015, they now make up almost a quarter of all debtors. Let's see what are the main reasons for this boom.

Kyle Littleton, 25, wanted to get rid of almost $ 4,500 of credit card debt.

This amount has absorbed his life. He was constantly tempted to continue using the card. However, he was annoyed the monthly payments weren’t reported to any of the three credit bureaus, which would help burnish his credit history.

However, Littleton, a HR specialist from Washington, D.C., decided to choose the easiest way. He took out a personal loan in August to wipe out the outstanding balance immediately, instead of increasing his monthly payments to pay off the debt.

"I returned everything. Now I can't add to it anymore. A loan over a credit card is very convenient thing. Otherwise, you think, ‘I need another $ 30’ and soon it turns into another $60 and so on," he said.

Littleton is a small drop in the borrowing trend. At the moment, personal loans have become the fastest growing consumer debt. Borrowers are getting younger. LendingPoint [https://www.lendingpoint.com], an online lender did research. The share of personal loan borrowers between the ages of 18 and 35 has doubled since 2015. Compared to 12% in 2015, they now make up almost a quarter of all debtors.

"It looks like we're attracting a higher percentage of young borrowers than Boomer ones," said Mark Lorimer, chief marketing officer at LendingPoint. “This corresponds to what we have seen in other areas. Millennials have unfavorable credit cards compared to their parents.”

Last year, TransUnion credit bureau [https://www.transunion.com] conducted its own study that showed millennials had fewer credit cards than generation X at the same age. Also, their balance was lower. The changes are since many online lenders advertise the speed and ease of obtaining a personal loan without going to the bank.

One of the reasons for getting a personal loan among young people, such as Littleton, is credit card debt and consolidation. But they are also more likely than generation X and Boomer borrowers to use funds for:

  • major purchases,
  • moving expenses
  • weddings, according to LendingPoint’s data.

Older borrowers unlike younger colleagues use loans:

  • to improve housing conditions,
  • medical bills
  • vacations.

Littleton's personal loan has a two-year term. However, he pays even more than the set payment each month. He’s also pleased that his timely payments are communicated to all three major credit bureaus – Experian [https://www.experian.com], Equifax [https://www.equifax.com] and TransUnion [https://www.transunion.com]. It could boost his credit score.

"My main long-term goal is buying a house. Having better credit will help me with that", he said.

get your money now

WATCH OUR VIDEO HOW TO GET ONLINE A LOAN YOU NEED

It takes only a few minutes

Get your money NOW!

APPLY NOW!
Just let us know how much you need.

We will send your request to our 300+ Direct Partners - it's much faster than applying individually to each lender.

Applying doesn’t affect your credit score!

By submitting your information you claim you have read and understood and agree to Privacy Policy, Terms of Use, Responsible Lending and Marketing Practices