Wednesday, November 18, 2009
Where to Get a Loan?
Post by David Held
About three years ago any bank, credit union, finance company, etc was willing to give almost anybody a loan (and even mortgages), but currently not many people can get loans. Since the economy crashed, about a year to date, it has been extremely hard to borrow money from anyone, especially a large sum of money such as a mortgage. This reason for this was because banks had an abundance of money and were willing to lend it to subprime clients (clients who have bad credit). Once the loan was given than the banks would pool the loans, give them a rating (A, B, C), and sell them to investment companies or the general public. Sooner or later most of these people couldn’t pay back the loans so the only option they would have is to default. Now we are currently feeling the wrath of the poor decisions that the banks, credit unions, finance companies, etc made.
Unless you have a perfect credit rating you cannot get a loan. Now the loan terms are not going to be favorable for a long time. The best advice is to save up until loan terms become favorable. If you do decide to invest in a time like this, make sure you have a diversified portfolio!
Sources #1, #2, #3