Good Credit Only Need Apply
Amidst the global credit crisis, a new report indicates that banks are increasing standards required before lending credit. Higher credit scores are required to get a loan - and higher interest rates are required for repayment of the loan.
Read More: Wall Street Journal, Chicago Tribune.
Unfortunately, for all the Feds efforts to ease the credit crisis, this suggests it hasn’t gone far enough or it won’t be successful with the tools at its disposal. It will be interesting to see the effect that tougher lending standards for businesses and consumers has on their ability to avoid default on current debt payments and continue spending to avoid a prolonged economic recession.
