How fast things can change. About a year ago, small business investors, potential home buyers, future college students, and seekers of new automobiles would use the word loan in conversations with their family members and friends. We all knew that a loan would have to be paid back over the course of time. We even knew how important our FICO scores were to attaining a loan. Then came 2008 and things began to change. How bad did it get?
Look at it from a consumers point of view. Many start losing their homes, (not to mention jobs). Credit availability is bogged down for millions. Retirement accounts, that people sweat so hard far, drop drastically or they are washed out completely. The same people, that are dumped on, are then asked to bailout the same banks that told us, we aren’t good enough to give lower rate interest loans to refinance our homes.

Unlike the banks that control our livelihoods, we had no control over the loan bailout (our tax money amp; grandchildren’s future). So simply put, many of us got hit with a double whammy. But, the story doesn’t end there. In the past month, credit card companies have started raising rates. Some rates have even doubled for some.

One has to wonder, if the credit card rate increase is because of the mortgage rate decrease. To his credit, President Obama met with 14 of the top credit card CEO’s this past week. He basically told them to forget the higher rate increases and extra charges that are added to our monthly credit card bill. This is only a few of the problems that credit consumers are faced with. Some credit card companies have offered cash, if people opt to close their accounts. Some people even had their accounts frozen. You can pay down, but not use your card.

From the consumers point of view, we are being drained now and our grandchildren are being drained in the future.

Student loans, mortgage loans, automobile financing all have been hit hard. FICO rates for loan approvals jumped. Worst than that is the fact that, if you constantly check your rate, it hurts your chances. It makes it look like other loan companies are checking you out , but their is no new activity in your account. This looks like rejection or loan applications.

I know that we can not put all the blame on the banks. Many of us have made bad choices. Many of us were lead to believe, that things will work out if we accept the ARM loan for our house. Maybe we should have known that things were headed the wrong way when gas jumped as high as it did.

Some loan companies are stalling for time. There have been some homeowners that have wanted to adjust or refinance their home loans. However, they are getting the run around from these companies. I have seen individuals interviewed on CNN and CSPAN and they can’t get companies to budge when it comes to refinancing.

It is no wonder that the American citizen is upset. Anyway, the word loan use to be a stabilizing word that we could use to fullfil our dreams. Now it seems to have become just another four letter word.