credit

Stateside
9:02 pm
Wed October 1, 2014

63% of millennials do not have a credit card, report says

Credit User: Eric Allix Rogers / Flickr

A recent report from Bankrate.com finds millennials are not embracing credit cards the way their parents or older siblings have done.

A hefty 63% of millennials do not have a credit card.

Brian O'Connor is the Detroit News personal finance columnist. He says one of the reasons young people aren't using credit cards is that they can't get them. 

"It's harder for kids to qualify – because they probably don't have jobs, and they have a bunch of debts," explains O'Connor.

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Opinion
8:49 am
Tue July 9, 2013

It’s time to plan for what comes after bankruptcy in Detroit

During the last year of World War II, as millions died in history’s most sustained orgy of violence, other men quietly and secretly planned what to do after the war was over. They worked out the details of the division of Germany and the administration of Japan even before those countries had been occupied. Doing that in advance was essential.

Historians agree that was a precondition for Europe’s eventual recovery, and Japan’s rebirth as a prosperous democracy.  This advance planning also went a long way to prevent a new world war breaking out in the rubble of the old.

I mention this because I hope somebody is thinking about what to do when Detroit declares bankruptcy, and even more importantly, when that process is over. Planning how the city will begin the process back to some form of prosperity.

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Business
7:47 pm
Mon July 16, 2012

Federal consumer watchdog agency will scrutinize credit reporting industry

Richard Cordray addresses a Consumer Financial Protection Bureau field hearing at the Detroit Institute of Arts.
Sarah Cwiek Michigan Radio

The  Consumer Financial Protection Bureau will start keeping close tabs on credit reporting companies, the Bureau's President announced Monday.

Richard Cordray told a field hearing in Detroit that CFPB—a relatively new federal agency created in the wake of the 2007-8 financial crisis--will start monitoring the largest credit reporting companies “just like we examine big banks” in September.

He says there’s still a lot we don’t know about the credit reporting industry, because no federal agency has had access to all the relevant information.

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Auto
2:54 pm
Fri May 25, 2012

Judge to auto dealers: Tell buyers about bad credit histories

Analysts say car sales are climbing.
Lester Graham Michigan Radio

A federal judge issued a ruling today telling auto dealers to inform buyers when they have negative information on their credit report, even if the loan is handed off to a bank or finance company.

Car buyers with bad credit histories often have higher interest loan terms.

The National Automobile Dealers Association wanted car dealers exempted from a provision in the Fair Credit Reporting Act.

From the Detroit Free Press:

The FTC concluded that the auto dealers actually use the credit report even if they do not physically obtain it, and so must provide the notice to consumers. NADA sued the FTC, challenging this interpretation. The court agreed with the FTC's position in its ruling.

"This ruling will make it easier for consumers to learn about unfavorable information in their credit reports," said Stuart Delery, acting assistant attorney general for the civil division. "The auto dealer is in the best position to provide this information because the dealer interacts directly with the consumer."

The Freep reports the National Automobile Dealers Association plans to "appeal to the Court of Appeals for the D.C. Circuit."

Michigan Radio's Tracy Samilton recently reported that Chrysler's sales have been buoyed by loans to buyers with less-than-stellar credit histories:

Chrysler's new car sales have been improving faster than almost any other car company in the U.S. in recent months. But the company has also been relying on subprime borrowers more than almost any other car company. That's according to Edmunds.com.

 

Samilton reports that the loans are riskier, but people still tend to pay them:

People are much more likely to default on a subprime house loan than a subprime car loan.

One analyst said the bigger risk for auto manufacturers is that more subprime loans might tarnish a brand's image.

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Auto/Economy
10:14 am
Tue April 24, 2012

Ford Motor Company's credit rating gets an upgrade

(file photo)
(photo by Steve Carmody/Michigan Radio)

DETROIT (AP) — Ford Motor Co. says its credit rating has been restored to investment grade by the Fitch Ratings agency.

The automaker's debt has been at junk status since 2005. The company had to mortgage its factories and other assets to borrow billions in order to stay out of bankruptcy.

Ford issued this statement:   

“We are very pleased with today’s decision by Fitch. It is an important proof point of the continued progress the Ford team is making with our One Ford plan. Moving forward, we will continue to focus on driving profitable growth for all of our stakeholders. In fact, our One Ford plan includes achieving strong investment grade ratings and maintaining investment grade throughout an economic cycle."

Company spokesman Jay Cooney says Ford's assets will be released as collateral once a second ratings agency boosts the company's credit rating.

Politics
4:26 pm
Mon November 14, 2011

Dems call for hiring tax break, credit help for small businesses

Democrats in Lansing have outlined a package to help small businesses grow and hire unemployed people.

The plan includes taking a portion of the money that’s in a state trust fund and investing it in local banks and credit unions to make small business loans.

State Representative Vicki Barnett said that will help small businesses having trouble getting credit from larger banks and investment funds.

“We know that a very teeny investment can have huge dividends in terms of job creation and access to capital,” said Barnett.

“There is no other state that I know of that is taking this approach to aggressive investment – doing things they already do with taxpayer money and targeting it to grow jobs in their own state,”she added. 

The Democratic package would also allow small banks and credit unions to pool their finances to invest in larger projects.

Barnett says that would make larger loans possible while allowing the institutions to share the risk.

The plan also calls for a tax credit for small businesses that hire long-term unemployed people and veterans.

Republicans shy away from job creation credits. They say the state should not single out specific businesses for tax breaks.

Auto/Economy
3:02 pm
Mon August 8, 2011

Personal finance: When friends, family and finances mix

Should you lend money to friends and family?
user penywise morguefile

The current credit crunch has made it harder for people to get loans from a bank. Gone are the days when you could walk into your local bank branch, flash your credit score and walk out with a loan. So many are turning to their friends and family for help...but is that a good idea?

To lend, or not to lend

When Pete and Michelle Baker wanted to buy a new house, they needed money for a down payment. Their down payment was tied up in their old house, which they hadn't sold yet.

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Economy
6:53 am
Thu July 28, 2011

Rating agency moves state’s economic outlook from ‘stable’ to ‘positive’

In the midst of a heated debate in Washington D.C. over the U.S. debt limit and with the country facing a possible credit downgrade, Michigan’s economy is getting a pat on the back. Fitch Ratings has revised its outlook for Michigan bonds from ‘stable’ to ‘positive,’ the Associated Press reports. From the AP:

The New York ratings agency left the state's overall bond rating unchanged Wednesday at AA-, an investment-grade rating that's three steps below the top AAA rating.

Gov. Rick Snyder met with analysts at Fitch, Moody's and Standard and Poor's on June 13 to discuss the state's growing economy and how the 2011-12 budget eliminates ongoing deficits without one-time fixes.

Fitch took note of the budgeting changes. It says its positive outlook also reflects efforts to put away more in the state's rainy day fund and "grow reserve levels."

The state lost its top AAA bond rating from Standard and Poor's in 2003.

As the Detroit News reports, on Tuesday Governor Snyder told reporters that, "Lawmakers in Washington should look to Michigan 'as a good role model for success' as they try to resolve a battle over raising the national debt ceiling that is approaching a crisis."

Economy
2:16 pm
Fri April 8, 2011

Michigan small businesses face obstacles for expansion

Some Michigan businesses find it difficult to get credit for business expansion
mconnors Morgue File

Michigan businesses may have more trouble accessing credit to grow their companies. But many don’t know about the resources available to help them. 

A new study from Michigan State University found that small businesses and start ups in the state have trouble getting loans to expand because of stricter lending practices.

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Governor-elect
5:46 pm
Thu December 9, 2010

Governor-elect touts nerd cred to accountants

Michigan Governor-elect Rick Snyder
wikimedia commons

Governor-elect Rick Snyder told a crowd in Detroit today that Michigan will beat analysts’ economic growth expectations in the coming years.

Snyder spoke to a group of accounting students at Wayne State University. He recounted an experience at a recent National Governors Association meeting.

Snyder says the investment firm Moody’s ranked each state for projected job growth. He described what he saw when he opened the folder for Michigan.

"The first number from 2009 to 2011 was 47," Snyder said. "The number from 2009 to 2014 was 50."

But the governor-elect called those projections "a piece of fiction."

"We’re going to beat the living daylights out of that number."

Snyder added that he plans to use his background as a CPA to put Michigan’s finances in order.

Economy
5:31 pm
Tue December 7, 2010

Increase in lending to car buyers with subprime credit

More cars are going to buyers with less-than-stellar credit.
Zelda Richardson

Perhaps another sign that the 'Great Recession' is thawing. Lending to people with a so-so credit score is on the uptick - at least in the car market.

The Associated Press reports "the percentage of loans going to subprime buyers rose 8% in the third quarter, their first year-over-year increase since 2007, according to a report issued Tuesday by Experian, a credit reporting agency."

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