More Than One in Five are Turned Down For Loans

Online, May 17, 2010 (Newswire.com) - Young borrowers who typically, have had little opportunity to build up their credit history struggle when applying for unsecured personal loans or other forms of credit. A recent survey reveals that more than one in five applicants between the ages of 18 and 34 have been refused a mortgage, credit card, business or unsecured personal loan within the last year. That is more than double that of any other age group. Additionally, the survey results showed that young people are a whopping four times more likely to report that they were turned down for credit than are people over the age of 55.

The survey, conducted by FindLaw.com, a legal marketing and information site, found that 4% of survey respondents state that they have been turned down for a mortgage, a home equity loan, an unsecured personal loan, car loan, or a student loan within the past year. Of those surveyed, 2% have been turned down for mortgage refinancing or a small business loan and 1% for a home improvement loan. The numbers get even worse when it comes to credit cards. A significant 15% of those surveyed were turned down when they applied for a credit card in the last year.

Young people are not alone in experiencing financial difficulty in the current economy. Many families find themselves unable to financially assist their children, at a time when they often need a financial helping hand more than ever.

With 2.3 million unemployed college graduates on the rolls in March (an increase of 170% since March 2007) and the average length of unemployment reaching a post-WWII record 31 weeks, young people are struggling when beginning families and careers. And because banks - a traditional source of credit, have struggled during the recent financial crisis and even sometimes failed altogether - credit unions, small banks, private money lenders and finance companies have become a more attractive alternative for those seeking an unsecured personal loan to help through tough times. Non-traditional lenders are more loosely regulated, often have more varied sources of funding, and quite often, still have the ability to make loans and be more flexible in the approval process than traditional banks.

Pre-qualify for an unsecured personal loan up to $250,000. Click here to learn more.