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Digital News Report – Personal and small business loans have been very difficult to acquire during this recession. Despite the low interest rates, customers find it hard to secure financing.
Unlike mortgage rates, personal loan rates do not fluctuate much. There was news today that Nationwide Bank lowered their personal loan rate to 7.2 percent.
There are many factors that affect interest rates. A good credit history will provide the lowest rate and easy access to financing. But even customers with a poor or bad credit history can receive funding, but with a higher interest penalty.
Business financing can be even more difficult to acquire. A new survey found that it is harder for small businesses to secure credit today that it was a year ago. According to the Greenwich Market Pulse survey of 221 small businesses, 33% of businesses say it is much harder to obtain loans today.
New rules issued by the Federal Trade Commission, which took effect January 1st ,have confused some borrowers. Yesterday the Federal Reserve released a new publication to help consumers better understand new notices they will receive from lenders.
The “What You Need To Know: New Rules about Credit Decisions and Notices” publication includes information consumers need to read their bank notices.
By Tina Brown