Kent Younce on Microlending and Traditional Installment Loans

Kent Younce

Kent Younce recently discussed the importance of protecting consumer choice for small-dollar credit. “I agree with Muhamad Yunus, the Nobel Prize-winning pioneer of the popular microcredit movement,” Kent explained. “These microloans allow people access to credit all over the world. In this country, like most others, having access to credit is vital for the development of a thriving economy, at every level of society. Yunus is acknowledged for his understanding of the importance of small-dollar credit. He has said that providing access to credit is one of the most powerful ways a person can lift himself or herself out of poverty—in a dignified way.

“In the U.S., many people have moved up the financial ladder by opening and paying off a traditional installment loan. In fact, these loans were an important part of our history. The ability for an average American to take out an installment loan helped build our middle class. (more…)

Kent Younce on Choosing a Personal Loan

Kent Younce Cuts through the Confusion

Kent Younce

Confused about the different types of personal loans available today? Kent Younce speaks to many people every year about small-dollar loans. He has clear and concise answers that can clear up the confusion experienced by many consumers in the face of media reports about various small-dollar loans. He says that two loan types, in particular, should not be confused with each other—namely, payday loans and traditional installment loans.

Kent says that traditional installment loans (TILs) are fundamentally different from payday loans in the ways they are structured, priced, and regulated. (more…)

What’s the Best Way to Get a Personal Loan?

By Kent Younce

Kent Younce

There are many finance companies that offer personal loans today. I recommend looking for a company that offers a traditional installment loan. These loans are highly regulated, safe, and affordable. Borrowers apply for a traditional installment loan at their local consumer finance office, just as they would for an auto loan or mortgage at a credit union or bank.

To obtain a traditional installment loan, the borrower submits a credit application to the lender. The lender reviews the applicant’s credit history and requires verification of income, residency, and ability to repay the loan. (more…)

A Better Loan for Consumers—Better than Credit Cards?

By Kent Younce

Kent Younce

During my 48 years in the consumer finance industry, I’ve often been asked whether credit cards are a good option for consumers. While credit cards certainly have an important role to play, and some carry interest rates lower than other small-dollar personal loans, credit cards are not the best fit for many consumers, and there are better options. Credit cards’ minimum-payment terms and the user’s ability to instantly access additional credit can actually trap consumers into ever-deepening debt. The easy-to-get-into habit of paying minimum monthly payments, which has become the standard for a large majority of credit card borrowers, also greatly increases the cost of this form of credit. (more…)

Consumer Installment Lending Customer Satisfaction Rates

By Kent Younce

Kent Younce

Consumer Installment Lending has one of the highest customer satisfaction rates of all financial lending institutions. It is second only to banking. When people face tight financial times, it is not consumer installment lending which causes them financial stress. In fact, it is often what helps them out of financial stress.

Many people appreciate the level of service they receive and the fact that loans are made based on their needs and their goals. It is a very thoughtful process, which requires a face-to-face meeting. This one-on-one conversation helps the customer as much as it does the loan manager, to build greater trust, to provide an educational environment in which questions can be answered and a loan provided to meet the consumer’s needs. (more…)

The Longevity of the Consumer Lending Industry

By Kent Younce

Kent Younce

“In watching this industry help my neighbors and friends, I’m honored to say that we have customers who have been working with us over multiple generations. The parents and grandparents of today’s customers all came to the very same brick and mortar office that still exists today to get a traditional installment loan. And to us that speaks volumes—that a relationship was established almost 50 years ago, that they know us, they can trust us, and that they want to do business with us—and share the benefits with their children and grandchildren.”

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