GreenSky Credit creates first truly instant-approval loans for big-ticket retail purchases
Everyone’s experienced going to a retail outlet and wanting or needing to buy a costly item but then realizing that they simply don’t have the cash on hand to complete the purchase. For items like washers, dryers or even home stereo systems up to items as expensive as diamonds or new automobiles, there have long been a number of options to complete these sales. One has been putting the item on some form of instalment plan. Another has been the wide availability of credit cards to those who have sufficient credit scores.
But aside from the automobile industry, items beyond a certain price threshold, typically in the mid-thousands of dollars, usually have no available means of financing. One reason for this is that most consumer credit cards only have limits in the $5,000 to $10,000 range. And even on those credit cards that have higher limits, maxing out the credit card for such large amounts may be a bad idea, both in terms of its effect on one’s credit score as well as the potential to incur huge interest and fees.
The fact is that goods and services costing more than about $10,000 usually don’t come with any form of financing at all. This has traditionally meant that people buying high-end luxury retail items or unusual, big-ticket goods or services would need to either get bank financing or have the necessary cash on hand. And bank financing for non-income-producing assets is difficult if not impossible to obtain.
But there are situations where creditworthy borrowers may want to borrow large sums of money for value-creating projects that still don’t fit the criteria for a mortgage and that are far too costly to put on a credit card. This is where GreenSky Credit can be of service.
For example, GreenSky Credit now allows creditworthy customers access to truly instant point-of-sale loans for home improvement projects. These projects may be offered through GreenSky retail partners or contractors on the job site. And these loans are available for amounts that previously were unheard of, up to the mid six figures.
Such loans have made GreenSky a $5 billion company, doing more than $4 billion in new loans each year.