Fair Credit May Not Qualify for a Loan
Fair Credit May Not Qualify for a Loan
The cloud of economic crisis that hovers above the United States which has been forcing the country to struggle is starting to lift. However, as credit card offers are starting to get back to normal, there are still several credit companies who are hesitant to offer full-fledged credit cards to consumers.
Before the recession that the country suffered in 2008, the country’s financial intermediaries that offered loans to people with poor credit were of abundance and even intermediaries who focused on clients with high scored credits were lowering their standards to fit more customers. This is according to Ben Woolsey the marketing director of Creditcards.com.
Currently though, the trend is not the same, this leaves people who have average score stuck in the middle of the industry. This makes it a little more difficult for these clients to get the loans they need compared to people with bad credit and people with perfect credit.
Though the financial intermediaries have gone back to giving to people with less than superb credit standing, they are not investing their resources for those with fair credit.
Credit companies share their hesitance in giving loans to average scored customers; this is due to the fact that their willingness to pay is doubtful. The past experience during the recession with these borrowers has led to the decision of the lenders not to entertain them anymore.
The lending business is not much of a competition among banks or financial intermediaries, more and more lenders are quitting the fair credit market. Each company have their own definitions of fair scored consumers.
Some consider getting a FICO score of 620 to 659 fair while for others the range is between 620 to 720. When the market is this strict in recovering from loses and securing that they gain from their transactions, indeed it is going to be the consumer who will have to prove their capacity or their willingness to pay their loans.
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Filed under: bad credit • Business Loans • Credit • credit cards • Credit Score • Loans • loans for people with bad credit
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