Myths and Facts About Personal Loans

Kent Younce separates myth from fact about traditional installment loans

By Kent Younce
Executive Vice President, Security Finance

Myth: Capping the APR on small-dollar loans is a way to protect consumers.

Fact: This has been a hot topic in the U.S., but it is pure myth. For small-dollar loans, interest rate limits actually work against consumers’ best interests. Arguments for across-the-board low rates overlook the critical fact that for small-dollar loans, low rates can mean that this beneficial type of credit becomes unavailable to consumers. Lenders simply cannot afford to offer the loans when the rates are too low to even cover their costs. In addition, loan products like credit cards, some of which may have lower initial rates, often mean higher costs for the consumer, because they are structured with minimum payments and indefinite terms, and borrowers can instantly take on more debt. (more…)

10 Reasons that Traditional Installment Loans are Safe and Affordable for Consumers

Kent Younce knows that people want to borrow money safely and responsibly. Having worked and served in the consumer finance industry for 48 years, he says the best type of personal loan available today is a traditional installment loan, or TIL. Kent explains the ten reasons that TILs are a safe and affordable credit option for consumers:

1. TILs are true amortizing installment loans. This type of loan helps protect the borrower’s household monthly budget and does not commit the borrower to repayment from a single paycheck. TILs are paid in affordable monthly installments over an extended period of time. (more…)

Current Affairs: Clearing Up Humprey’s Issues

By Kent Younce

Installment loans are popular, especially for those who have ever had one. People like the convenience. They like the service they receive—a quick, face-to-face meeting, with timely approval process which often has consumers leaving with a check in hand within an hour. Customers also like the respect they are given when they come in to meet with a loan manager or assistant manager at a local, neighborhood office.

That is why the loans are so popular. And the fact that you know exactly what you are paying and you know what you are getting for your money. When you get a consumer installment loan, you come in and ask for a loan based on a goal you have in mind. If your budget will allow for it, your loan is approved and you can walk out with the money you requested. The payments are reasonable too. They are based on an individual’s actual budget and are given in a way that allows a consumer to make the payments without stressing their cash flow. (more…)

The Longevity of the Consumer Lending Industry

By 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.” (more…)