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Q: It is hard to meet the criteria to borrow money from a bank these days. Our credit score is not bad but we do not have the 20-30% being requested as a down payment by the 3 banks we have talked to so far. Where do you go to borrow money when banks won't loan?
A: Banks are not the only sources for financing. The question does not specify what you wish to borrow money for, but if it is for a car or a house then considering your local credit union is the first thing I would recommend.
Credit unions have always been a good resource for financing large ticket items like cars or homes or home repairs. While credit unions started out as a resource for employees of a particular company or industry, many credit unions have expanded their memberships so that almost anyone can join a credit union if they choose to. Most of us have either a family member or friend who is a member of a credit union we would qualify to join. Additionally, there are credit unions which you can join just because you live in a specific geographic area.
While it is frequently not a good idea, borrowing from family may be a solution as well.
Lastly, I would be remiss if I did not address the fact that banks are, in fact, still loaning money.
It is true that loans are harder to come by. They have raised the credit score to qualify as well as increased the amount of paperwork and the down payment required to get a loan in most cases. Those are good guidelines which would have prevented the mortgage mess we are experiencing had they been in place during the past 4-6 years. While it is true that conservative lending will reduce the number of loans which are made, it will also decrease the number of defaults which occur.
If your credit needs some repair, get a copy of your credit report from all three credit reporting agencies and work on getting yourself ready for a good loan at a reasonable interest rate.
Log onto: www.freeannualcreditreport.com. Why not get started today? It will be time well spent.
Copyright © 2008, Home Ownership Matters, LLC. All Rights Reserved.
(Please E-mail Heather at homeownershipmatters@gmail.com with any questions, comments or concerns you might have! We appreciate all comments and feedback, so please don't be shy.)
A: Banks are not the only sources for financing. The question does not specify what you wish to borrow money for, but if it is for a car or a house then considering your local credit union is the first thing I would recommend.
Credit unions have always been a good resource for financing large ticket items like cars or homes or home repairs. While credit unions started out as a resource for employees of a particular company or industry, many credit unions have expanded their memberships so that almost anyone can join a credit union if they choose to. Most of us have either a family member or friend who is a member of a credit union we would qualify to join. Additionally, there are credit unions which you can join just because you live in a specific geographic area.
While it is frequently not a good idea, borrowing from family may be a solution as well.
Lastly, I would be remiss if I did not address the fact that banks are, in fact, still loaning money.
It is true that loans are harder to come by. They have raised the credit score to qualify as well as increased the amount of paperwork and the down payment required to get a loan in most cases. Those are good guidelines which would have prevented the mortgage mess we are experiencing had they been in place during the past 4-6 years. While it is true that conservative lending will reduce the number of loans which are made, it will also decrease the number of defaults which occur.
If your credit needs some repair, get a copy of your credit report from all three credit reporting agencies and work on getting yourself ready for a good loan at a reasonable interest rate.
Log onto: www.freeannualcreditreport.com. Why not get started today? It will be time well spent.
Copyright © 2008, Home Ownership Matters, LLC. All Rights Reserved.
(Please E-mail Heather at homeownershipmatters@gmail.com with any questions, comments or concerns you might have! We appreciate all comments and feedback, so please don't be shy.)
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