Card Cards
Personal Debt Issues

Consumer Financing Shifts to Credit Cards

July 24, 2008 - Credit conditions have progressively worsened throughout this economic downturn.   Lenders have been increasing the minimum credit scores required for many types of loans and have raised the minimum loan-to-value requirements (or LTV) for a variety of mortgages.  Many mortgage loans being underwritten in today's lending climate necessitate that a borrower must have a higher equity position in their home if refinancing or must make a larger down payment contribution at the time of purchase.  As a result of this shift in the credit markets and the subsequent tightening of lending standards, consumers have been left in the position of having to charge many new purchases on their credit cards.    Consumer loans are primarily unsecured and do not include loans secured by assets such as real estate.  Demand for non-revolving credit used to finance consumer purchases such as autos and vacations has recently fallen to its slowest pace since December whereas revolving credit, a category which includes credit card use, increased by over 7% during the same period.  Consumer credit is increasing at an annual rate of over 3.5% while total consumer debt is 1 billion higher than many analysts expected and has hit levels topping 2.5 trillion. 


Nancy Osborne, ERATE.com Nancy Osborne has had experience in the mortgage business for over 20 years and is a founder of both ERATE, where she is currently the COO and Progressive Capital Funding, where she served as President. She has held real estate licenses in several states and has received both the national Certified Mortgage Consultant and Certified Residential Mortgage Specialist designations. Ms. Osborne is also a primary contributing writer and content developer for ERATE.

"I am addicted to Bloomberg TV" says Nancy.

Other Articles:

Consumers want financial protection agency

Credit Card Rules Begin to Change; Issuers Slash and Burn

Credit Card Default: The Next Wave?

Tips on Shopping for a Secured Credit Card

Federal Reserve Chairman Ben Bernanke Gives Economic Outlook

Lending Standards Stricter Industry Wide

Fannie Mae & Jumbo Mortgage Rates

Just One Click! = Current Rate Chart

Pennsylvania Mortgage Rates Current Mortgage Rates - Hawaii Current Mortgage Rates - Alaska West Virginia Mortgage Rates Virginia Mortgage Rates District of Columbia Mortgage Rates Maryland Mortgage Rates Delaware Mortgage Rates New Jersey Mortgage Rates Connecticut Mortgage Rates Rhode Island Mortgage Rates Massachusetts Mortgage Rates New Hampshire Mortgage Rates Vermont Mortgage Rates New Hampshire Mortgage Rates Maine Current Mortgage Rates Vermont Mortgage Rates Current Mortgage Rates - New York Current Mortgage Rates - Michigan Current Interest Rates - Wisconsin Current Mortgage Rates - MINNESOTA Ohio Mortgage Rates Current Mortgage Rates - Kentucky Current Mortgage Rates - Indiana Illinois - Current Mortgage Rates Current Mortgage Rates - Iowa Missouri Mortgage Rates Current Mortgage Rates - North Carolina South Carolina Mortgage Rates Current Mortgage Rates - Florida Current Mortgage Rates - Georgia Current Mortgage Rates - Tennessee Current Mortgage Rates - Alabama Current Mortgage Rates - Mississippi Current Mortgage Rates - Louisiana Current Mortgage Rates - Arkansas Current Mortgage Rates - Oklahoma Current Mortgage Rates - TEXAS Current Mortgage Rates - New Mexico Current Mortgage Rates - Arizona Current Mortgage Rates - Kansas Current Mortgage Rates - Nebraska Current Mortgage Rates - Colorado Current Mortgage Rates - Wyoming South Dakota Mortgage Rates Current Mortgage Rates - North Dakota Current Rates - Montana Idaho Current Rates Washington Mortgage Rates Current Mortgage Rates - Oregon Current Mortgage Rates - Utah Current Mortgage Rates - Nevada Current Mortgage Rates - California

Start by selecting your state


Related Articles:

Loans to Avoid

You and Your Credit;
Make it a Happy Ongoing Relationship