Smart Borrower Blog

Archive for the ‘Personal Borrowing’ Category

Could Small Banks See More Lending Opportunities In The Near Future?

An article on Bloomberg.com reports on an Obama initiative for small business lending that passed the house last month and could go to vote this week in the Senate. President Obama is once again pushing to get more money into the hands of small business owners in hopes of boosting the sluggish economy through job creation. The Obama administration claims that there are approximately 30 million small businesses in the country, meaning that they employee less than 500 employees. The employees in these small businesses account for about 64% of all new jobs that are created. The bill would allocate... more »

Card Spending is Up, and Visa is Reaping the Profits

The numbers for the fiscal second quarter are in and the verdict is: people are spending more money on their cards. This is good news for the global economy and great news for the world’s largest payment network Visa Inc. Visa’s Chief Financial Officer Byron Pollitt told reporters on a conference call that spending on debit or credit cards increased 15 percent in the first three weeks of the second quarter compared with one year earlier. An article on BusinessWeek’s website quotes him as saying debit card purchases jumped up by 22 percent and credit card transactions rose by 7... more »

Big Banks See First Quarter Profits: Loan Delinquencies Are Diminishing

Could the financial crisis be taking a turn for the better? Some think so with many large banks seeing better than expected first quarter profits. After two years of ups and downs, many banks are hoping that the positive start to 2010 will continue. While banks might not totally be out of the woods just yet, they are making some great gains. It seems there might be a glimmer of light at the end of a dark tunnel. Profits across the board can be partially attributed to less loan delinquencies. Citigroup, the bank hit the worst by the financial... more »

Are Interest Rates On The Rise?

According to an article today posted on cnnmoney.com, interest rates could be on the rise. Home loans, car loans and credit cards could start costing more in the very near future. With the economy starting to recover consumers should be thinking ahead and know that their future borrowing needs could become pricier. During the current economic recession, rates have been lower than many people have ever seen in their lifetime. How have rates managed to stay so low for so long? The highest impact on current lending rates has been determined from the Federal Reserve’s federal fund rate. The... more »

Consumer Borrowing Slows, Credit Delinquencies Fall

From the latest set of market data, it looks like the economy and the jobless rate are still making consumers wary of spending and using credit. The Federal Reserve reported that total consumer credit dropped in February by a seasonally adjusted $11.5 billion to an annual rate of $2.448 trillion. That represents the 12th decrease in 13 months and is a much worse decline than the median expected drop of $700 million by a Bloomberg survey of economists. Revolving debt, including credit cards, fell by 13 percent on an annual basis, roughly by $9.4 billion, accounting for the largest decrease... more »

Big Banks Driving Some Consumers to Small Lenders

Big banks are still in business, no doubt about it. But according to a CNN article today, their practices may be starting to alienate a portion of their customers. In fact, a recent survey from the Forrester Research company found that the nation’s largest banks like Bank of America and JPMorgan Chase are “among the least trusted U.S. financial institutions.” That lack of trust may be pushing some people away, but I think the majority of those ditching the big banks are doing so for purely financial reasons. Fees seem to be continually rising while interest rates on savings accounts... more »

Payday Lenders Converting to Small Loan Stores

Tennessee-based payday lending company, Check Into Cash, is converting some stores over to small loan businesses. According to South Carolina’s homepage, The State, twelve of the South Carolina Check Into Cash stores are changing over by the first of 2010. The other remaining CIC stores will be closing indefinitely. South Carolina’s 12.1% unemployment rate is also having a great impact on the payday loan business, considering the concept of a payday loan doesn’t work when many people don’t have jobs. The General Assembly has recently placed new operating restrictions and regulations on payday lenders. It’s too early to say if... more »

Tips for Personal Loans in Today’s Economy

In today’s struggling economy obtaining a personal loan can be a challenge, but not entirely impossible. More important than ever before you should do your research before filing any loan application. Dotting your I’s and crossing your T’s can greatly increase your chances of obtaining the loan you desire. Review Your Credit Report Thoroughly Before applying for your loan you should first review your credit report. If you have less than stellar credit, this will be particularly important. Look closely for any discrepancies. If there are any mistakes get them corrected before seeking your loan. If there are hits... more »

FICO Score Changes More Forgiving

Good news for those hoping to improve their credit. Changes to the FICO model that credit agencies use to determine your credit score is more forgiving for small credit blemishes, according to a recent article in the Wall Street Journal. The new formula, FICO 08, has been made available to lenders by the big three credit agencies; Experian, TransUnion and Equifax, since last month. Unlike previous versions, FICO 08 will not ding your credit score for bills in collections originally under $100. It is also less likely to lower your scores for occasional missed payments, although those with a pattern... more »

Consumer Delinquency Rates Grow, Unemployment to Blame

A recently released report from the American Bankers Association (ABA) showed that 3.35 percent of consumers were behind on their loans during the first three months of this year, compared with 3.16 percent in the last quarter of 2008. These consumer loans include home equity loans, home improvement loans, direct and indirect auto loans, marine and RV loans, mobile home loans and personal loans. Of those categories, the delinquency rate on direct car loans grew the most from 2.03 percent to 3.01 percent. ABA chief economist James Chessen said in a statement: “The number one driver of delinquencies is job... more »