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Survey shows lenders feel credit standards will remain tight
By Peggy Stillwell on May 22nd, 2010
Finding access to credit was made more difficult by the recession, and a recent survey shows it may not get easier during the second quarter.
According to a poll of bank professionals by FICO, 92 percent of respondents said they did not think lending standards would loosen during this quarter. However, 52 percent said they expect Americans to seek additional sources of credit.
Furthermore, the survey showed that 95 percent of banking representatives said they thought interest rates offered would stay where they are or increase, while 83 percent said that credit limits would decline.
"Banks will stay focused on loss prevention," said Dr. Andrew Jennings, chief research officer for the company. "Our survey found most bankers are still concerned about delinquencies."
Sixty percent of those polled said they foresaw an increase in mortgage delinquencies, while 59 percent said the same thing for credit cards.
Consumers who are in a difficult financial situation may be seeking ways to try and reduce the amount they pay in interest. This might be done by pursuing debt consolidation for credit cards, which can also make paying bills easier.
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