Traditional Signature Loans Becoming More Difficult To Obtain

Online, May 31, 2010 (Newswire.com) - Crisis in the lending industry over the past several years has resulted in more and more potential borrowers experiencing loan rejections - with younger applicants hit especially hard. According to a survey conducted last year by FindLaw.com, more than 20% of loan customers between the ages of 18 and 34 have been refused a mortgage, signature loan or credit card within the last year. This makes younger borrowers more than twice as likely as older age groups to have been turned down for personal loans or signature loans, mortgages or credit cards.

As a result of this financial crisis - more and more borrowers are turning to non-traditional lenders who offer signature loans and that often have less rigid standards for loan approvals. While banks, once the most common source of credit, have struggled and sometimes failed altogether - credit unions, small banks, private money lenders and finance companies often still have the ability to make loans and be more flexible in the approval process.

Younger borrowers are not the only ones that are suffering from the angst in the lending industry. Even the white, upper middle class professionals that once made up the bread-and-butter of the banking sector, are more often finding themselves "downwardly mobile." Rising unemployment, depressed investment returns and losses, lower home equities, and pay cuts and freezes have come as a shock to many. During the past two decades, families cashed in on a rising standard of living to help pay for their childrens' college expenses. Many older Americans now find it difficult or impossible to financially assist their children, at a time when they often need a financial helping hand more than ever.

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