A report released today confirms that the credit crunch is still with us.
The Senior Loan Officer survey took bankers' temperatures regarding future plans to lend and activity in recent months. CNNMoney reports:
"Half of the banks surveyed said they lowered credit limits, and 35% reported tightening standards for credit card applicants. None said they loosened standards or raised limits for existing customers."
At the same time, demand for loans eased. Potential borrowers may be less willing to take on debt, and some may have given up as a result of the credit crunch.
In this environment, it's important to watch your credit - be careful not to raise any red flags with your lenders. Also, check your credit cards and lines before using them. Some consumers find that their credit evaporates without notice.
Further reading:
- Full Report: Senior Loan Officer Opinion Survey (PDF)
- Alternatives: How Peer to Peer Lending Works
- Family Loan - A Good Idea?