Are Bad Credit Loans Facing
Extinction?
[
] ─ What began as a minor downturn in the U.S. housing market in 2007 has
since become a global economic crisis, the likes of which the world has not seen
in generations. Making matters worse, economists say, is the tightening of
lending standards by major credit issuers, particularly for consumers with derogatory payment histories. Does this spell the end
of loans for people with bad credit?
Not quite, according to our latest market research. Mortgage loans have
indeed become much more difficult to obtain during the recession, though
a limited number of options remain (see our rankings of available home
loans). However, the drop-off in
available subprime loans seems to end there.
Take for example bad
credit auto loans. Our findings show more options on the market today
than before the economic crisis, even for those with very bad credit. Likewise,
we have seen an increase in the number of bad
credit personal loans available, many with better terms than offered in
previous years.
Even credit card offers remain abundant during the downturn,
with interest rates for subprime applicants as low as 9.99% with other favorable
terms (see credit cards
for bad credit for our comprehensive list).
As the bad news of a worldwide recession continues, the good
news is that Americans who are looking to rebuild credit still have a
number of options at their disposal.
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