There have been some serious issues in American society and its financial health is under question. There is too much debt around but equally there are valid reasons why people want to take out personal loans. The question is their availability. Interest rates are fairly low for those who apply successfully. The financial sector has changed in recent years and for many that change is for the better because the basis of being successful is increasingly affordability rather than history.

Everyone carries their credit score with them, good or bad. It is like a badge that will tell those who are interested something about you.  It is something that lenders refer to when you apply for money but so do many potential employers are part of their decision process on a job application. In many cases it has become a badge that people do not want to wear. The reason for that often has its roots in the recession. When the Collateralized Debt Obligation (CDO) crisis struck there was widespread misery. Unemployment doubled to over 10% and many received foreclosure notices before then losing their homes because they could not pay their mortgages. Every time they failed to pay a bill on time that failure was entered into their credit history resulting in a reduction of their credit score.

A Different Environment Prevailed

While few were entirely innocent because they had taken on credit and were unable to meet their obligations prior to the recession there was a very positive feeling about the economy and its growth. There was no reason not to have a mortgage that stretched them because property prices were rising quickly so their assets were going to grow. When the crash came and many who had thought they were in secure employment became unemployed the trouble started; and it continued until real estate prices fell. The surplus of property on the market with few buyers around ensured they were not going to start to rise particularly quickly. [Read more…]