Right now, you may be feeling the pressure when it comes to getting a loan. Experts said banks and lenders are getting a lot pickier when handing out money, especially if your credit is shaky.
“Things are very tight these days, and banks are, lenders are choosy,” Laura Gooding said.
With six kids, the youngest a 4-year-old, a larger vehicle is a necessity for Gooding. She thought getting a loan would be a slam dunk.
“To my surprise, unfortunately I was turned down due to something in my credit that was almost twenty years ago,” she said.
Experts say that's happening more and more.
An instructor at USF said, now, there's an uptick in interest rates, and anytime interest rates go up, it changes the dynamic between lenders and borrowers.
Banks are trying to find new customers, but are hitting them with higher credit standards.
“They’re squeezing people and being incredibly selective. It’s almost like they don’t want to lend the money these days,” Gooding said.
Non-profit Wheels of Success helps people with transportation, and their founder regularly sees people who can't get loans based on credit. A new program is changing that, basing loans on income.
“We can offer car loans to some of our folks for up to $7500 that are interest free and that have no basis on credit,” Susan Jacobs said.
But that program is still growing. Right now, many people with lower credit scores could have trouble getting a loan.
“Everybody’s just tightened up, on, you can maybe get it, but they want a lot more documentation,” Jacobs said.
“Make sure that going in, you’re aware that it may not be as easy as you think it is,” Gooding said.