Is it easier or harder to obtain credit during a recession?

It will be difficult to get credit and for some unexplained reason rates this time are slightly higher.

Financial institutions are reeling from the mortgage mess. This has carried over to all lending and will effect it for many more months until all the dust settles from the mortgage mess.

If you're talking about credit cards, it's a mixed bag.

Because card companies have lost billions, the thought has occurred to them, "Maybe we shouldn't be giving credit to everyone who can fog a mirror."

So they're tightening credit -- demanding higher credit scores before they'll offer cards, and lowering credit limits when they do offer. For folks with bad or marginal credit, it will be harder to obtain credit.

But a recession is a shrinkage of the economy, not a stoppage, so unless it's Depression II, there still will be money to lend and card companies that want to lend it. But they'll want to lend it to people with good credit histories.

So folks with good credit can expect to benefit from a "flight to quality," as lenders compete to attract them.

My site just did a story on this topic today. You can see it at http://www.creditcards.com/credit-card-news/credit...

Harder, credit requirements tighten, become harder to get credit, requiring higher credit scores, lower debt to income ratios and more down payments.

THis time the interest rates are going up because capital is tight and risk that was previously ignored is not ignored any more! THis will make it harder to find money to borrow.

Try this website

http://www.ukhomeloan.org/

Lots of info and links to lenders.