Record enquiry levels at CrazyCredit
The credit crunch seems to be doing nothing to reduce the level of loan enquiries, with this website experiencing record levels since the turn of the year. Loans are both more expensive and harder to come by since the troubles started in credit markets last autumn, but enquiry volumes have bucked the trend by doubling since January 2008. Loan providers are themselves struggling to secure lines of credit, which in turn reduces the number of loans they are able to provide. In fact a number of UK loan companies have gone to the wall over the past few months, as their typical providers of cash were unable to advance the wholesale loans they previously approved.
As well as money for lending being restricted, credit providers are also much more wary about the risks involved in lending to people with bad credit records. These risks were easily offset last year when property values provided cast-iron security against a debt being repaid, but times are different now. The typical bad credit loan is both more expensive and will carry all kinds of acceptance criteria that last year did not apply.
