So I hear on all the shows CNBC, Fox Business, etc that banks are starting to lend again to free up backlog and get the consumer out there spending cash, so we can continue to pursue our "comfortable" lifestyles. The problem, I recently encountered was that lending comes at a rather steep price. My family and I are in the process of hiring a landscaper to redo our backyard. Rather than tap into savings, I started to look around for a home improvement loan through various outlets. I'm amazed to say that even going through various credit unions, the cost was over, 10% for a loan up to approximately $20,000. If I wanted a loan for over $25,000 then the rate decreased a bit, but was also tied to a variable rate.
We have "outstanding" credit and both employed, so the issue is not based on credit score or ability to repay the existing loan, the problem is there are still many institutions who are deathly afraid to loan to the individual consumer. At a time when banks can borrow from the fed and one another at an astronomically low rate, I would argue the government expects that to be passed on to credit worthy consumers, so we can stimulate the economy in a positive way. However, as a credit worthy consumer, I can honestly say this is still not "trickling" down to the consumer.
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