Will Credit Crisis Affect Me
A visitor submitted this credit question: Will the credit crisis affect me, my personal finances and security?
Because of the credit crisis, loans and credit cards are not as easy to obtain as they once were, because lenders are experiencing or witnessing the failures caused by lending to high risk people. Hence, credit may be unattainable for some or may come at a higher cost. And the need for credit; on a continuing basis, is a huge must for many.
So the answer is: Yes. In fact, the credit crisis most certainly has already affected you in the form of higher prices, particularly from smaller retailers. Smaller retailers; who are unable to secure ample credit to purchase products in bulk to obtain a reduced per item cost, are having to pass the higher costs on to their customers.
Even many big retailers rely upon small retailers to stock their shelves with specialty merchandise. Whenever those smaller retailers pass along higher costs to their larger retail partner, those costs are naturally passed on to the consumers.
Many businesses rely upon seasonal sales for their total annual revenue. During lean sales months, such businesses rely upon credit to stay afloat. If their not able to get credit; or to get credit at a favorable rate, they must charge more.
Your bank may charge you higher interest rates or fees. If a bank is unable to secure as many loans as it normally does; or if those loans are now at new, higher risk rates, the increased cost of their borrowing is passed on to the consumers borrowing from them.
Even if you are not borrowing money (not using credit cards or loans), and even if you don't have any recurring debt other than normal living expenses, you are not immune to the credit crisis.
Any purchase by any business; which is now at a higher cost due to the credit crisis, will likely be passed immediately to consumers.
Even rising fuel costs will cause everyday consumer purchases; such as grocery and building materials, to go up. The extra costs per gallon tap into the profits of transportation companies, which pass the costs to their clients, who then pass the costs to consumers.
What you can do to help yourself and the economy: Continue borrowing (using loans and credit cards), but use them wisely. Invest in yourself and our country. Open a savings account and buy no risk U.S. savings bonds.
Improve credit scores by paying off delinquent debt. Order your annual free credit report to check for mistakes and fix errors.
More Information:
Home Mortgage Poor Credit Crisis
Bad Credit Problems
Economy Credit Trouble People
Economy and Debt
Bad Credit Equals Poor Economy
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