Easy Loans During the Current Credit CrunchEveryone 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.