There might be a credit crunch but not everyone is feeling the pinch. Consumer lending fell by 3.8 percent in 2009. That’s a drop but it’s not as if lenders have closed up shop; many loans are still being made.
* More than 90 percent of the decline in loans occurred at financial firms with more than $100 billion in assets, according to the Federal Deposit Insurance Corp. The largest 10 percent of banks reduced consumer lending by 4.7 percent last year.
* On the other hand, consumer loans actually increased nearly 3 percent at firms in the bottom half of the industry, by asset size. Some smaller banks and credit unions enjoy strong financial positions so they have boosted lending.
Therefore, if you are in the market for a home loan or a credit card, don’t restrict your search to major lenders. Look at smaller firms, too, perhaps starting with your neighborhood bank.
