Sep 18, 2008 4:00 pm US/Eastern
3 On Your Side: Securing Credit
PHILADELPHIA (CBS 3) ―
Does the doom and gloom of the economy have you wondering
if you'll ever be borrow money again?
3 On Your Side's Jim Donovan takes a look at what you'll
now need in order to secure some credit.
Overnight the national average for a 30 year fixed rate
mortgage was 5.83 percent, a 15 year fixed rate mortgage was 5.5 percent.
You can get still lower interest loans and credit cards
but there is a catch.
Two years ago it seemed like banks were handing out
mortgages, car loans and credit cards like they were candy.
Now?
"There are still loans being made, there are still
money that is available that is if you have the right factor," said Patty
Hasson with Consumer Credit Counseling Service of Delaware Valley.
Interest only mortgages where buyers don't put down any
money are a thing of the past.
Banks are now looking for down payments of 10 to 20
percent.
"Banks are definitely looking for more cash down.
They are not doing any of those high financings anymore, and they are really
taking a hard look at credit scores and making sure that your credit history is
pristine," said Hasson.
Credit scores of 720 or higher and well documented assets
will get you the best rates
"The scores vary. Some lenders may go into the 680's
but you'll have to work with a counseling agency," said Hasson.
Banks are also being more conservative with when offering
home equity loans.
"It's tougher to get home equity loans but again it
is still possible. If you have a good credit score, if you have not a lot of
debt. And they are going to factor in how much debt. If you were to use that
line in full, could you still pay back all of your obligations?" said
Hasson.
Credit card interest rates now average around 11.5 percent
down from about 14 percent a year ago.
If you have very good credit and are paying over nine
percent, you're paying too much. You may want to shop around for a different
card, or better yet, don't carry a balance.
RELATED LINKS:
www.cccsdv.org
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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