Smart Borrower Blog

Archive for December, 2011

Parents Helping Kids Get Mortgage Loans

In these days of economic uncertainty, many potential homebuyers are asking their parents for help. Today buyers are facing the most stringent lending standards in decades as well as a shaky job market. They are often in need of a good chunk of change in order to qualify for a home purchase. According to a survey from Better Homes and Garden Real Estate as reported in a CNN Money article , one in five baby boomer couples have already helped at least one of their children buy a house. That help has come in the form of giving cash for... more »

Subprime Borrowers Boost Auto Lending

The automotive lending pipeline has started to open up again for borrowers with less than stellar credit. According to new reports, car loans for subprime buyers, or those with credit score between 550 and 620, have risen substantially this year, indicating a revival of lending among that market segment. Information from CNW Research and Experian, as reported in a CNBC article, shows that the number of car loan approvals for those with poor credit have jumped up 15.72 percent already this month over the whole month of November, while approval for individuals with good scores rose just 1.36 percent from... more »

Small Business Lending Suggests Stronger Economy

U.S. small businesses are borrowing more these days, after having consolidated and tightened up during the recession. Increased borrowing points to a stronger, more solid economic foundation than before the recession, according to PayNet President William Phelan. The Thomson Reuters/PayNet Small Business Lending Index, a measure of the total loan activity to small businesses, grew 20 percent in October marking the 15th straight month of double-digit increases in borrowing. And as lending standards have tighten considerably since the economic crash, it is implied that small businesses have improved their risk profiles. Plus, increased lending shows that businesses are looking more... more »

Consumer Borrowing, Credit Card Use Up in October

Consumers continued to borrow more money in October, according to the latest figures from the Federal Reserve, and the trend could suggest either progress or danger. Total consumer credit grew by $7.6 billion to $2.457 trillion, outpacing September’s $6.88 billion increase. Americans have upped their spending and borrowing for 12 of the past 13 months, with August being the notable trend-breaker. Borrowing during that month fell by the most in 16 months. Still, in general U.S. consumers have been taking on more debt. Non-revolving credit, including student loans and car loans, rose 5.3 percent, or $7.28 billion in October. This... more »