Are you in the mood for a new car but can’t get that car loan? Is your husband ready to purchase that new boat but can’t get a boat loan? Would you like to use your home equity to pay off some bills, make an investment, or take a much needed vacation? You may say yes to any or all of these questions. But every bank you visit says no to your request for financing.

In the current US economic crisis more and more people are having difficulty getting the financing they need. Many of them have good or perfect credit. But banks across the nation are hesitant to lend regardless of the credit score. Texas banks are no different. Not only are Texas banks suffering from the same issues as other US and world banks but they are also reluctant to extend credit to customers. Since much of the system is fueled by credit flow how is one to obtain a loan during this crisis?

This does NOT mean that you will not be able to get a loan. It just means that you may need to invest a little more effort before you are able to get that loan. There are many things you can do to improve your chances of getting a loan:

First, take some time to consider your current credit situation and personal finances. There are many services that offer free credit report analysis. You should thoroughly examine your credit report. Look for any discrepancies or negative postings. Work tirelessly to correct them.

Next, be sure that your overall debt is minimal or nonexistent. The less debt you owe the more attractive to a lending institution you will be. Contrary to popular opinions there is no such thing as good debt. One of your highest priorities should be to decrease your income to debt ratio.

Finally, avoid using your retirement or savings for collateral. Cash on hand is always attractive to banks. Many institutions may require you to secure a loan with your savings or other cash. But try to avoid this. The amount of money you lose when you withdraw your retirement early is HUGE! Do anything you can to avoid this as you can count on almost 50% of the total amount to be taken away in penalty fees and taxes. When you consider this, it may be worth waiting a few more months before getting that loan.

There may be many banks in Texas that are not lending. But there are a few that are able to lend due to the federal funds extended to them. Credit unions are also a good place to find financing. If your credit situation is such that you can easily qualify for a personal loan then keep shopping around until you find the right institution for you. Ask more questions up front so that your time is not wasted. Keep your patience in full effect and eventually you will be able to get that new car, new boat, or take that long awaited vacation.