A recent article published by USA Today discusses our current climate for consumer loans. We have recapped the intro to the article and provided a link to continue.
Banks are getting more picky about which consumers they’re approving for loans as borrowers with spottier credit histories struggle to keep up with payments.
The data is surprising in light of an economy and labor market that have been rolling along. Consumers are benefiting from solid job growth, faster pay increases and low debt levels. And the stock market is at record highs.
Yet 11.7% of banks tightened standards for auto loans in the first quarter, up from 3.3% late last year and the highest level on records dating back to 2011, according to the senior loan officer survey released by the Federal Reserve last week and Deutsche Bank.
Credit card standards were toughened by 8.3% of banks, compared to none in the fourth quarter. And criteria for consumer loans excluding credit cards were tightened by 7.3% of banks, up from 2.4%.
Visit USA Today to learn more about current loan challenges.