Posted on 05/19/2022 9:37:14 AM PDT by NautiNurse
Borrowers with limited or troubled credit histories are defaulting on credit cards, car loans and personal loans
Consumers with low credit scores are falling behind on payments for car loans, personal loans and credit cards, a sign that the healthiest consumer lending environment on record in the U.S. is coming to an end.
Delinquencies on subprime car loans and leases hit an all-time high in February, based on Equifax’s tracking that goes back to 2007. (Subprime defined as credit score below 620).
[Snip]
The jump in subprime delinquencies could reduce lenders’ willingness to make loans to riskier borrowers.
[Snip]
Fewer people are in subprime credit-score brackets than when the pandemic began. Some 18.6% of U.S. adults with credit scores had a score lower than 600 in 2020, compared with 15.5% last year, according to Fair Isaac Corp. , creator of FICO scores.
[Snip]
Capital One Financial Corp. recorded a higher U.S. credit-card 30-day-or-more delinquency rate in the first quarter from a year prior. Lender Bread Financial Holdings Inc. also reported a higher delinquency rate for its cards and other loans for the quarter.
(Excerpt) Read more at wsj.com ...
Good credik be raciss ...
There’s a credit crisis looming. People are using credit to cover stretched budgets due to higher costs of inflation.
It affects all of us somehow. It’s the people who don’t know how to manage their finances that are in danger and will destroy the economy.
The democrats have perpetuated poverty and financial illiteracy and now it’s going to cost America heavily.
OH! So that’s what “Subprime Borrower” means?!?!?
Unexpected.
Bidey Boo will just wrap those up with the student loans, forgiveness fir everyone 🤣🤣🤣🤣🤣🤣
Surprisingly unexpected.
“There’s a credit crisis looming. People are using credit to cover stretched budgets due to higher costs of inflation.”
You’re being charitable. As the economy has taken the nose dive I’ve noticed people haven’t stopped going out to eat. I submit that for a family of 4 eating out costs roughly 4 times what eating at home costs, (assuming you cook and don’t do uber eats).
I think people are much less prone to planning and much more in the moment today. When they want something, that becomes a need, and they do what they have to in order to fill that “need”. Want to go out to eat? It’s a need, so charge it.
I’ve been telling my wife for a couple months now that people are charging like crazy, and the real issue will come in the fall when they want to buy Christmas gifts but their cards are maxed out.
Seems like I’ve seen this story before. It didn’t end well.
Expect there will be another round of federal charitable giving just in time for the November mid-term elections.
Ha. I will never ever feel sorry for credit card companies. Too bad for them. They constantly extend credit to very risky people. Then when TSHF they want a govt bailout. Eff ‘em.
Eating out is costly -- worse, maybe, than owning a boat.
So....the people that banks think will have trouble paying back loans, so that they wouldn’t make the loans, but are still forced to make the loans by the goobermint, aren’t making their payments.
It’s obvious that this problem is caused by racist white banks (probably Jewish to boot).
Women and minorities hardest hit
They're great for building credit IF you have self-discipline. Acquiring a multitude of credit cards dilutes your (high impact) credit use percentage. The problem arises when you fail to pay them off each month.
"The two happiest days in a diner's life: The first meal in a restaurant and the last meal in a restaurant"...said no one, ever.
Consumers with low credit scores are falling behind on payments for car loans, personal loans and credit cards, a sign that the healthiest consumer lending environment on record in the U.S. is coming to an end.
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Low credit consumers? Healthiest consumer lending environment? That single sentence contradicts itself.
2008 Redux.
Inflation and higher prices for EVERYTHING doesn’t help ... people too close to the line - are now over it...
Interest rates on variable rate loans will take this bad situation and make it worse. We’re not eating zoo animals yet (like what happened in Venezuela with their hyper inflation ) but we’re on that path..
People who voted for Biden because they didn’t like Trump’s tweets should feel massive shame for what they’ve done to the country.
Wait, you have to pay them back? I knew there’d be a catch.
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