|
EL PASO -- Good luck getting a credit loan at your local credit union or bank during the looming financial crisis on Wall Street.
Many Sun City residents are finding it hard to get a loan as looming concerns over the state of our nation's financial system hit home. As local credit unions feel the credit crunch, payday loans institutions are booming.
"Credit is very hard to get," said Sam Diaz, the President and CEO of Mountain Star Federal Credit Union. "I've always looked at how many loans we made for the month. Now, I'm looking at how many we've turned down."
Diaz said four out of five of his customers can no longer qualify for a car loan. "We used to be able to lend members on an unsecured loan with a credit score of 650 down to 600. Now, we're looking at 750 and close to 800."
A credit score of 800 is a perfect score and banking experts say the average American's credit score is usually 615. "I tried to pre-qualify for a home, [but my credit score] was under about 20 points," said a local home-seeker.
In the meantime, payday loan companies -- which you can find all over El Paso -- are experiencing a credit boom. One employee said recent customers range from registered nurses, doctors and even lawyers.
It's very clear the credit crunch is not only leaving the country in a crunch, but El Pasoans in a pinch. "We've got to scale down expenses so we can survive," said a local resident.
"We're actually setting aside money right now, because when it comes to credit, it's horrible," added another resident.
Source: http://www.kvia.com/Global/story.asp?S=9069339&nav=AbC0 |
