Many attribute the slow economic recovery to bank lending numbers being down despite low mortgage rates throughout November and December. Banks are being tight with their lending practices as people seek out business loans, personal loans, and home loans.
Mortgage rates are at such a low that many are looking for home loans so they might take advantage of these record low numbers, but banks are being more strict to whom they lend and it seems that nowadays unless a person’s credit is perfect a bank will not lend.
With bank lending numbers down many feel the economic growth is going to creep along since our nation is so dependent on credit and bank lending. For homes, cars, and businesses money has to be available but are banks in the wrong for not lending?
Many financial institutions are blamed for aiding in the recession by loose lending practices and now that they have been saved by bailouts the lending seems to have gone out the window. However, since the unemployment rate is so low and millions of Americans are struggling with the job market can the banks be blamed for being cautious?
Despite low interest rates, banks seem to be constrained in their lending because they feel the average American’s income isn’t a guarantee of repayment since the job market has yet to make any real progress.
It seems the only thing that can get banks to lend again is for Americans to have secure jobs and opportunities for employment widely available. Only time will tell if banks will make an investment in our nation and begin lending again or if we’ll have to wait for the job market to pick up before lending is more accessible.
Bank lending has become a very hot topic as millions of Americans are looking for Capital One bad credit unsecured loans. Rather than going into the bad credit process blind it might be recommended to look at all options. The FDIC currently insures well over 7000 banks so checking out these options would be ideal.