Yeah, right! Their back alright, but not on home loans. The New York Times reported that lending institutions (meaning credit card companies) are back to making loans to “risky” borrowers. Credit card companies are seeking ways to increase their revenues that have been banned or tightly guarded by federal regulations. Offering loans and credit cards to borrowers with risky credit is their way of gaining additional income.
The Subprime Mortgage Crisis and Past Lenders
We need the hard money and subprime loan lenders that Beneficial Finance, Aames Home Loan, Household Finance and the Money Store once served and made a profit by extending credit to borrowers that were at risk. They were a real asset to many consumers and homeowners. No doubt their lending practices were not the most commendable; however, most people understand the ways of our system and accept the old cliché “you’ve got to give a little to get a little.”
Many consumers that have bad credit in today’s market are not perpetual and consistent risky borrowers of the subprime mortgage crisis. Today’s average consumer and homeowner have been victimized by the domino effects of a system that was ruined by Wall Street and the real estate market. These people should not be penalized, but, given a chance to prove who they really are. More consideration should be placed on past history rather than the last few years of economic downturn.
Credit Card Companies that are Lending
To that end, we should welcome lending institutions who are willing to extend subprime loans and credit to damaged credit consumers; they will provide a very valuable service to a countless number of people in today’s market.
If you are looking to rebuild your credit, contact Orchard Bank, Capital One and First Premier they offer secured and unsecured credit cards.