As the economy continues to improve, credit card issuers have begun to loosen their vice grip on lending standards in order to raise borrowing limits for consumers. But the move to provide extend credit to those with blemished histories has raised concerns with consumer groups.
As if we needed any more bad news about the already burdensome state of student loan debt in America, a new report says about a third of the almost $900 billion in outstanding student loan debt is held by the riskiest borrowers, the subprime. And another third of those borrowers who are in repayment are 90 days or more past due — quite an uptick from 24% in 2007. This combination of rising numbers of risky borrowers and loans going bad goes to show how the economic crunch is hitting recent graduates. [More]
After getting all hot and heavy leading up to the recession, then turning completely cold shoulder, credit card companies are once again starting to selectively flirt with subprime borrowers.