Rumor has it that more and more banks, lending institutions, and credit grantors are really cutting back on extending credit to consumers and businesses.
Access to all types of credit is really tightening.
Because of the current credit crunch, credit grantors are:
- tightening their lending standards on credit cards
- no longer issuing credit cards to people or businesses they would've issued credit cards to before
- reducing the credit card limits of current cardholders
- tightening their lending standards on any and all types of loans
- raising the minimum required credit scores for granting any and all types of credit (including credit cards)
- approving lower loan amounts for people or businesses who do not meet new credit scoring requirements (if approved at all!)
- less willing to make installment loans
- cutting way back on the number of educational loans they approve
- cutting way back on the number of recreational vehicle loans they approve
- increasing loan/credit approval documentation requirements
- beefing up their verification procedures and standards
- implementing new fraud detection software or services into their business operations
- being more aggressive with their collection efforts on outstanding accounts
The credit market may be a little uncertain but one thing's for sure, an A+ credit rating will definitely be needed to get access to credit these days.
With or without A+ credit, has the current credit crunch affected you negatively in some way? If so, feel free to sound off about your experience in the comments section below.
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