Citicards and GMAC just announced HUGE losses. What will they do to stay afloat? Does this mean it is a good time for applicants with less than desireable credit have a better chance when they apply?
2007-11-07 10:40:16 · 5 answers · asked by bribri8785 2 in Business & Finance ➔ Credit
The exact opposite is what is occurring. Lenders are tightening criteria for loans, so that they don't have to write off these huge losses in the future. Tightening standards reduces risks to the lenders, and helps them remain solvent.
2007-11-07 12:42:12 · answer #1 · answered by acermill 7 · 1⤊ 0⤋
Hell no! That is exactly what they WON'T be doing again anytime soon until they think the government isn't looking anymore. They are going to be tighter than ever about loans if they know what's good for them.
2007-11-07 12:31:18 · answer #2 · answered by Anonymous · 0⤊ 0⤋
The opposite. They can't stand to have more debtors with lousy credit. Their interest rates will be worse.
2007-11-07 10:44:56 · answer #3 · answered by Steveo 5 · 2⤊ 0⤋
No, they'll get more selective on who they give loans to. Giving loans to people who can't/won't pay them back is what got the country into this mess.
2007-11-07 12:32:35 · answer #4 · answered by Judy 7 · 1⤊ 0⤋
The opposite. They will sell assets if they need cash.
2007-11-07 10:49:37 · answer #5 · answered by Anonymous · 0⤊ 0⤋