The latest innovation in the fintech sector is an application that will calculate if we can reimburse or not the credits that we request by analyzing a large amount of data that the credit analysis of the entities does not always take into account. This idea arose on the premise that many users, lacking a credit history or not having seniority, see their requests denied for no apparent reason. This new software will help to analyze more accurately the profile of the applicant, increasing the number of approvals.
How the software works that will help you get credits
Credit analysis is the way that credit institutions have to evaluate whether or not we will be able to repay the requested personal loans without problems. However, these analyzes depend on factors such as the credit history of the users they do not always have. This is why a group of start-ups, thinking that people without previous credits can have a good chance of repaying the credits without problems, have launched a program to evaluate and calculate with algorithms and machine learning, meaningful patterns to warn if an applicant represents a good credit risk or not.
ZestFinance, a company founded by Google’s former IT director, has launched its ZAML software. ZestFinance began collaborating with Baidu in China, where only 20% of the population has a credit history to analyze. The company analyzed 21 different factors in the data of the Chinese search engine – factors such as the way in which they perform searches or digital portfolios – discovering patterns that can be used to analyze whether or not they approve the credits that are requested. The success was not long in coming as in a matter of two months the credit company Baidu granted 150% more credits to users without credit histories without any increase in losses.
How to increase your chances of getting loans
Today there are some types of credits that allow us to get small amounts of money to solve small contingencies and that, when granted by private equity entities, do not require linking or seniority to approve our request. It is true that this type of lenders like purplepayday.loan loans bad credit also grant financing to people with slightly more risk profiles such as people without payroll or enrolled in files of defaulters such as ASNEF, although with this type of software the percentage of loans granted could increase.
These minicréditos take into account factors such as job stability, expenses, and monthly income or credit history if we had it. In order to obtain the financing we need, it is important to request an amount commensurate with our level of solvency and that allows us to repay the credit without problems.
In the following free guide prepared by the experts of HelpMyCash, we analyze which are the profiles with the highest risk of being denied and the tricks to increase our chances of approving our request.