Everyone is talking about the difficulty of borrowing money right now during the current credit crunch. But I have learned from my unique experience that there is still money available to borrow, even in these current market conditions.
Consumer credit for auto loans and home mortgages is kind of scarce, because the major banks who have historically loaned this money are struggling under a mountain of bad loans.
Despite the contraction of consumer credit through the various nationwide banks, there are banks that are still loaning money to consumers. If you stop to think about the facts of this matter, what I am getting ready to tell you will make good sense.
The Banking Industry
There are hundreds of major banks which made loads of money during the last couple decades – banks that loaned money to pretty much anyone who filled out a credit application. These banks are now struggling with record bank loan defaults. As such, they do not currently have the economic strength to be able to loan money now. These troubled banks started tightening the reigns on their lending practices, when they realized how bad the situation had become.
Despite all of the bad news in the consumer credit industry, there is a lot of good news, but you will never hear the good news when reading the newspaper or watching your favorite news show.
See, while there were hundreds of major banks that loaned money to absolutely anyone who asked for it, there were also hundreds of other banks that did not diminish their credit standards, in order to loan money to people who could not afford to pay back the loan.
As a result, there are thousands of smaller banks and credit unions that have strong financial portfolios, permitting them to loan money freely during the current credit crunch.
So, if you need a loan right now for a car replacement, you should visit your local banker to see if they would be willing to loan you money for that purchase. You might just be surprised. I know that here where I live, there are at least three banks that would be willing to loan me money for the purchase of a new car, if I wanted to purchase a new car.
The Private Lending Industry
A friend of mine buys and sells homes for a profit. Of course the current economic conditions are good for his business in that there is a lot of opportunity to buy homes for a deeply discounted price. But as with any business, one needs to have access to capital to keep moving forward and to take advantage of opportunities when they come.
My friend talked to a potential investor this morning who told him that if my friend could provide him houses, then the investor could supply the purchase price of the home within 24 hours!
My friend has bought and sold nearly four dozen homes in the last six months, and his home investors have what seems to be an almost unlimited access to capital to invest in the homes he buys.
So while Wall Street and major banks struggle to provide money to borrowers, private lenders seem to have no problem getting the money they need to buy homes or anything else.
The Small Consumer Loan Industry
As I have demonstrated earlier in this article, the credit crunch is only affecting those banks and lenders which used bad judgment in their lending practices.
The cash advance payday loan industry has not been as foolish as the major banks have been, and that really says something. The cash advance payday loan industry loans money to absolutely anyone who walks through the door who has a job and a checking account. And yet, their books remain stronger than the books of some of the major banking institutions. This story is just dripping with irony, isn’t it?
It might help that the cash advance payday loan companies charge a bit more money for a loan and that they loan smaller amounts of money for less time than the major banks do.
Although these loans are not for everyone, they are loans for people who have experienced a short-term cash shortfall. If you can afford to pay back your loan in two weeks, when the loan becomes due, then the payday loan company could provide to you much needed cash in your time of need.
Author’s Note: This article was originally posted at
http://cash-advance-payday-loans.org/blog/current-credit-crunch/2009/02/
Article also published here.
…
With Arlo Mooney‘s background in finance and economics, he strives to help people understand complex economic principles in simple terms. If you want to learn the inside story of the September 2008 economic collapse, read more at: http://cash-advance-payday-loans.org/blog/
But if you are looking for a payday loan, Arlo recommends http://www.fastcash4all.net/
Read more articles written by Arlo Mooney
Related posts:
- Buying And Selling a Home During a Credit Crunch
As President Obama is taking office, many people who had hoped to buy a home in 2008 or 2009 are stressing as to whether a bank will be found, which will finance a home purchase. The TARP bill (Troubled Assets Relief Program of 2008) was intended to secure bad assets... - Payday Advance Loans Are Now Only One Toll Free Call Away
A friend of mine recently went through financial troubles and asked me, knowing that I’m a finance writer, if I could push him in the right direction for a short term loan to help out with his expenses. Here’s his story: I have finally taken a positive step. I made... - Tips For Restoring Your Credit In The Aftermath Of Foreclosure
With foreclosures hitting record levels, many people are having to sit down today and wonder how they should go about restoring their credit in the aftermath of a foreclosure. I am not going to lie to you. It will not be easy, and it will take some time to work... - Business Startups with Bad Credit
Bad personal credit is a common stumbling block for first-time entrepreneurs. Often, the motivation for going into business is to make more money, indicating that they are not making enough money working for others, thus, bad credit. Working for yourself is the best opportunity for building wealth, and the sooner... - Consolidating of High Rate Credit Card Debt with a 401K Loan
Banks are putting the squeeze on even their best long term card holders at a time when other sources of credit, such as home equity loans for example, are harder to come by. A lot of people are shocked to receive notices that their credit card rate has jumped to... - Credit Card Companies Reward Consumers Who Shop Around
With Ronald Reagan came mass deregulation in many industries. One of the industries that benefited from deregulation was the financial industry. As a result, hundreds of new financial companies were introduced to the American consumer during the 1980′s. With the sudden explosion of new competitors in this industry, credit card... - Student Credit Cards Can Help Lay The Foundation For Prosperous Adult Living
Credit is one of the most fundamental aspects of the financial structure we have built our society. In fact, a great credit score can be one of the most valuable assets an individual will ever have in his or her life. A young person, just beginning to build a credit... - What My Mother Taught Me About Credit Cards And Family Finances
My mother is an amazing woman. She made some of the hardest jobs imaginable look easy. No matter how hard her day was, she always had a smile and perfect hair. She was mainly a stay at home mom but she worked cleaning houses when our family’s financial situation called... - Finding the Best Credit Card Applications
Online credit card applications can be confusing. That’s the way the banks want them. When you search for a credit card, you’ll likely come across credit cards that advertise long 0 percent interest rates and low long term interest rates. However, when you get to the credit card application fine... - Curious Employee Foils Corporate Credit Card Fraud Scam
MOLLY, THE ASSISTANT, Molly treasurer at XYZ Corp. in Miami, opened an e-mail from a former colleague who no longer worked for the organization. The e-mail read: “Hi Molly, there should be a refund of $716 on my old corporate Visa card from the IP Conference. I paid for, but... - Banks Do Not Want To Foreclose Your Home
When the phone is ringing every day and the bank is threatening to foreclose your home, because you are behind on payments, it is easy to believe that the banker is drooling over the possibility of foreclosing on your home. But you should know that the bank stands to lose... - Home Financing in a Foreclosure-Heavy Market
In today’s housing market, foreclosures are at a high that hasn’t been seen since 1979. Seven percent, or roughly one of every 11 homes, is currently in foreclosure. According to the Mortgage Bankers’ Association, 6.35 percent of homes are in delinquency but not yet in foreclosure. The housing crisis is... - Learn From History – The Anatomy Of An Economic Meltdown
Over the last couple years, many consumers were burned badly by the state of the economy and the failing of many of the banks people have relied upon for generations. At the beginning of 2007, the United States had five investment banks, through which a lot of investment transactions occurred.... - Easy Tips To Reduce Your Cost Of Living And Survive Recession
Recession is a period of general economic decline and we need to prepare for it. Surviving the recession is much easier when you are prepared for it. Here are some tips for surviving the current economic crisis. Don’t panic, keep your senses open and pay great attention to the market... - Is Government Working For You – Or Are You Working For Government?
The new Congress and President are hard-at-work trying to push through a new economic stimulus package. Our elected leaders are claim the stimulus package will cost $825 billion, but the Congressional Budget Office (CBO) – which is known for its accurate accounting – says that with interest costs, the package...