Credit Crunch Ending

Banks are now lending money to people who’ve defaulted on their homes.

Loans for people with good credit scores are increasingly easy to obtain.

Credit card offers are going out in the mail again. I’ve even received a few.

In the long run, this has to be good for the economy in general and the housing market in particular.

Citi and American Express keep sending me credit card offers even though I signed up online to not receive any more credit card offers.

SmartMoney.com reports:

In another sign that borrowing is easing up, some banks are extending credit beyond the best borrowers to include those with significant blemishes on their credit reports, says James Chessen, chief economist at the American Bankers Association. At the moment, borrowers who have defaulted on their mortgages — but are current on all other loans — are among the attractive candidates for new loans. Between February 2009 and August 2010, 64,500 borrowers who had defaulted on a mortgage received a consumer loan, according to a study released last week by credit bureau TransUnion. The majority secured credit cards, but almost 40% got car loans or a personal loan or line of credit, according to TransUnion’s study.

And while more recent data isn’t available, experts say the number of loans granted to mortgage defaulters has likely continued to grow. “It’s certainly loosened up now,” says John Ulzheimer, president of consumer education at SmartCredit.com, a credit-monitoring site. “I would say [lending] is more prevalent than the TransUnion study suggests.”

About Luke Ford

Raised a Seventh-Day Adventist at Avondale College in Australia, Luke Ford moved to California in 1977. He graduated from Placer High School in 1984, reported the news at KAHI/KHYL radio for three years, attended Sierra College and UCLA, was largely bedridden by Chronic Fatigue Syndrome for six years, and converted to Judaism in 1993. From 1997-2007, Luke made his living from blogging. Living by Beverly Hills (Alexander90210.com), he now teaches the Alexander Technique (moving the way the body likes to move). Lessons cost $100 each and last about 45 minutes. In 2011, Luke completed a three-year teaching course at the Alexander Training Institute of Los Angeles. His personal Alexander Technique website is Alexander90210.com. Luke is the author of five books, including: » The Producers: Profiles in Frustration » Yesterday’s News Tomorrow: Inside American Jewish Journalism
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