| Why can't I get credit today that I could get 6 months | | | | default on the loan. The days of everyone qualifying |
| ago? | | | | for a loan are gone. The risk is too great for some |
| Six months ago you applied for credit but felt that | | | | lenders. Many lenders have basically stopped making |
| putting a bigger down payment would be better so | | | | loans out to anyone who does not meet their rigid |
| you saved your money. Today you applied for the | | | | standard. |
| same loan but were denied. You have reviewed your | | | | This is not anything against you and you should not |
| credit and see that your credit score has not gone | | | | take it personally. Most lenders who have changed |
| down, but you still did not qualify for the loan. What | | | | their lending standards have done so because they |
| happened and what can I do about it? You may not | | | | need to protect themselves against potential losses. |
| even see anything that needs Credit Repair. | | | | You can pursue other lenders to possible find a loan if |
| This has been referred to as a "Credit Crunch" and in | | | | you feel that it is necessary. But when the economy |
| today's economy is becoming much more common. A | | | | begins to turn around most lenders will begin changing |
| Credit Crunch is when lenders tighten up their lending | | | | their lending standards. This might help get the Credit |
| practices and make is so borrowers must meet a | | | | ball rolling again. |
| much stiffer group of criteria to qualify for a loan. Auto | | | | It is important that you keep moving forward with |
| Loan, Credit Cards and Mortgage lenders are | | | | paying your bills on time and in full. If you can continue |
| reviewing their lending practices so that their risk is | | | | to save money for a larger down payment then you |
| reduced in giving out loans. Many people think that the | | | | will be better off when the economy does turn around. |
| only lending practices to have problems these days | | | | The Credit Crunch will eventually come to an end and |
| are Mortgage Lenders, but in actuality every one is | | | | credit will be available to most people again soon. |
| affected. | | | | Risky borrowers may find it practically impossible to |
| Lenders are moving to the low risk side of the lending | | | | find a loan today, but in 6 months more and more |
| equation so that their risk is minimized. No lender wants | | | | lenders might be willing to make those risky loans. |
| to take a risk when they feel that there might be a | | | | |