Lending Struggles in the New Year
With all of the preparing, decorating, shopping, baking, and wrapping occupying the months leading up to this week, Christmas has come and gone in a flash leaving many individuals to focus on the upcoming new year. In my last post we discussed some of the shaky economical situations that 2007 will likely be remembered by but on the immediate horizon, there will certainly be affects of the sub-prime industry rearing their ugly head as we cross over in 2008.
It is likely that the lending industry as a whole will tighten its collective belt in repercussion to the events of 2007. Prepare for increased difficulty when attempting to borrow money from your bank and this means more than just morgages. Car loans, home-equity lines, personal loans, and even some student lending will likely be affected. For obvious reasons, lending institutions are likely going to increase their stipulations before approving loans. To make matters worse, interest rates will likely suffer as well.
However, I don’t mean to spread doom and gloom in this topsy turvey time, but rather just to remind potential borrowers to keep their credit report squeaky clean at least until things level out again. What better to resolve for the new year than to iron out any rough spots that may be tainting our credit reports.
