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I co-signed student loans for my daughter, but am now disabled. What can I do?

 I co-signed student loans for my daughter, but am now disabled.  What can I do?

How to get out of student loan debt

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Question: I cosigned on a private student loan for my daughter in 2006. Soon afterwards my health deteriorated, and I was granted disability benefits retroactively back to June 2006. I have not worked since June 2006, and my only income comes from my Social Security disability benefits and my retirement pension benefits as I was a federal employee. Both agencies (Social Security & US Office of Personnel Management) deemed me to be disabled.

Unfortunately, my daughter has ignored, and continues to ignore, her responsibility to make the payments on this loan, and they are now coming to me for payment. I was able to make a few payments on the loan, but am no longer capable of making any kind of payment. I have explained to the bank that I am on a limited income due to disability, but they continue to call me seeking payment and I keep explaining that I can’t send them something I don’t have. Is there any way that I can be removed from this loan, or do you have any other advice for me?

Answer: Generally speaking, when you cosign a loan like this, each cosigner is liable for the full amount of the loan. To see how you might be able to be released as a co-signer, “obtain a copy of the loan’s promissory note. This is the document that lays out the terms and conditions of the loan and should include the provisions for a cosigner release. In most cases, the lender requires that the loan be current, among other things, before granting co-signer release, but it’s still worth exploring,” says financial adviser Zack Hubbard of Greenspring Advisors.

Have a question about getting out of student loan or other debt? Email [email protected]

Typically, a cosigner release requires the primary borrower to sign off on releasing the cosigner, and the lender must also approve the removal of the cosigner, which can only be done if the borrower demonstrates they’re able to make payments. You should also check the terms of your loan to see if there are any provisions for disability. It may be that only the primary borrower’s total and permanent disability will allow for forgiveness, but read the fine print to see.

Unfortunately, there’s often no easy way out here as you’ve cosigned the loan which therefore makes you responsible for paying it off. “Your daughter is the key to the solution. You should continue to try to get her to communicate with the lender to come up with some type of repayment plan,” says certified financial planner John M. Piershale. Adds Anna Helhoski, student loan expert at NerdWallet. “If your primary borrower refuses to repay the debt you’ve co-signed and you’re also unable to make a payment, your only option may be negotiating with the lender. If your lender refuses to comply, make a complaint with the Consumer Financial Protection Bureau. While you negotiate, try to pay at least the minimum monthly payment to keep your loan in good standing.”

Consulting attorney and discharging student loans in bankruptcy

Matthew Jenkins, certified financial planner at Noble Hill Planning, says this situation likely requires an attorney. “It’s possible for your daughter to remove you as co-signer, but that would require your daughter to refinance the loan and that doesn’t seem likely in this case. As this is a private loan, you also have the option to remove yourself as co-signer through the bankruptcy process, but that is a long, complicated and expensive and endeavor there’s no guarantee that a judge will agree with your viewpoint,” says Jenkins.

Still, it might be worth consulting with a bankruptcy attorney. “to see if they can help get you discharged from the loan on the grounds of your disability,” says certified financial planner Lisa Weil. Since you’ve already qualified for Social Security disability benefits, this is an indication that you’re indeed battling a serious disability and that your resources are already quite limited — which may help you qualify to get loans discharged in bankruptcy (though note this is tough to do).

“Regrettably, this kind of scenario is not at all that uncommon and while I realize this particular ship has already sailed, this is the reason why I’d try to dissuade any client nearing retirement from cosigning a loan like this,” says Weil. But there is one incredibly positive thing to note, according to Piershale, is that your Social Security benefits may not be eligible for garnishment with private student loans the way they would be with a federal student loan.


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Ex-Alabama sheriff indicted by federal grand jury for allegedly gambling with loan money meant for jail food

Ex-Alabama sheriff indicted by federal grand jury for allegedly gambling with loan money meant for jail food

A former Alabama sheriff who resigned last year after impeachment proceedings were launched against him is now facing federal charges after he was indicted by a grand jury for allegedly lying on loan applications.

William “Ray” Norris, the former Clarke County sheriff, allegedly applied for four loans at two Alabama banks worth more than $48,000 and maintained that he would use the funds for his office’s operating expenses and jail food, according to the grand jury indictment unsealed in federal court in Mobile earlier this month.

But Norris instead used the loan money from Town County National Bank in Camden and Sweet Water State Bank in Sweet Water “for overdrawn personal accounts, gambling expenses, and other personal expenses,” the indictment claimed.

Norris was indicted on four counts of making a false statement to a federally funded institution.

The loans were taken out between November 2017 and October 2018 with amounts ranging from $9,500 to $14,000.

Norris resigned from his office in June 2021 after Alabama Attorney General Steve Marshall moved to impeach him after being charged with four instances of corruption in office and eleven instances of commission of crimes involving moral turpitude.

The charges were dropped after Norris stepped down.

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DOE Releases New Study Confirming Strong Performance of Energy Efficiency Loans

DOE Releases New Study Confirming Strong Performance of Energy Efficiency Loans

WASHINGTON, DC— The US Department of Energy (DOE) today announced a first-of-its kind study that confirms energy efficiency loans are generally low risk, have historically been repaid at a high rate, and perform well compared to other asset classes. The study also highlights the opportunities for financial institutions to support the transition to a cleaner, more efficient building stock. With states and local governments set to receive billions of dollars in funding for clean energy deployment under the Bipartisan Infrastructure Law, this study reinforces the impact financial institutions will have as partners in retrofitting America’s building stock and the crucial role energy efficiency loans will play in cutting costs for American families and reaching President Biden’s net-zero carbon economy by 2050.

“Energy efficiency is the lowest cost clean energy resource we have,” said US Secretary of Energy Jennifer Granholm. “The findings in this study are a compelling invitation to financial institutions to invest with homeowners, states, and local governments to maximize clean energy deployment under the Bipartisan Infrastructure Law and beyond.”

The study, titled Long-Term Performance of Energy Efficiency Loan Portfolios, produced by the State and Local Energy Efficiency Action Network, DOE, and Lawrence Berkeley National Laboratory shows energy efficiency loan performance compares favorably to other asset classes, like prime auto loans. The study also informs a long-standing barrier of access to credit for energy efficiency improvements among low-income and underserved communities. Specifically, the study finds that high-credit borrowers repay loans at a strong rate. The findings should signal to financial institutions that they can benefit from investments in energy efficiency and help to increase access to low-cost capital for disadvantaged communities.

While the performance of energy efficiency lending has generally been understood to be strong, the data from this study significantly expands the volume and sophistication of public evidence. The report analyzed over 50,000 residential energy efficiency loans from four large programs in Connecticut, Michigan, New York, and Pennsylvania. Notably, three of these programs have track records of more than a decade.

Request for Information

In tandem with this report, DOE released a new Request for Information (RFI) to collect best practices for designing revolving loan funds. The Bipartisan Infrastructure Law provides $250 million to States to implement the Energy Efficiency Revolving Loan Fund Capitalization Grant Program. Funding provided through this program will enable States to capitalize revolving loan funds and provide grants to conduct commercial and residential energy audits, energy upgrades, and retrofits of building infrastructure. This RFI will solicit input from a broad range of stakeholders — states, private lenders, investors, labor unions, community development organizations, environmental justice organizations, and disadvantaged communities — to inform program guidance and ensure the program achieves the goals of the Biden Administration.

For more information on the study, attend the Energy Efficiency Loan Performance Roundtable Discussion on April 7, 2022. The Roundtable will highlight opportunities for continued growth of energy efficiency lending to stimulate the transition to a cleaner, more efficient building stock, expand access to capital for disadvantaged communities, and maximizes the impacts of the Bipartisan Infrastructure Law. Register for free here.

Download the full study or one-page overview document.

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Loan Is Not Bad – Here Is What You Need To Know | ThinkRealty

 Loan Is Not Bad - Here Is What You Need To Know |  ThinkRealty

You must have heard that you should keep away from debt or loans if you want to be successful. It is a complete lie, not only that but it is also a great way how rich people to keep getting richer and poor people to keep getting poor.

The wealthy are frequently in debt. However, they have assets that more than offset the debt. In reality, the wealthy not only carry debt but actively use it to increase their wealth. You can also get rich by getting CreditNinja’s installment loans but you have to use them the right way.

The so-called financial specialists believe they are the most knowledgeable persons in the room. They believe that debt is detrimental for most people since most individuals are not smart enough to use debt properly to grow rich.

Here is what you need to know about debt and loans

Good Debt And Bad Debt

There is always a good debt and a bad debt. The difference is simple, the one that makes you wealthy is good debt, and the one that makes you poorer is bad debt. You must avoid bad debt.

For that, you will have to realize the difference between a liability and an asset. Rich people use debt to buy assets like real estate, businesses, brands, stocks, or gold. This keeps them getting rich.

Poor people or middle-class people use loans to get a car, or to pay their luxury apartment rent – ​​these are liabilities and it keeps them getting poorer. It all depends on how you use loan. If you are using the money to buy something that makes more money, it will keep you far away from bankruptcy but if you use the loan to buy things you don’t need or just to show off, you will soon be homeless.

How To Use Loan The Right Way?

Each company loan and lender may have different restrictions or criteria. The best payments are ones that come in consistently and do not need you to do anything.

Many entrepreneurs argue that once they have tasted the freedom of being their boss and calling the shots in their firm, they will never want to work for anybody else.

Financing a side hustle is similar to financing any other small company initiative. Your side hustle aspirations may not be as grandiose, but borrowing money to fuel its growth is still a major commitment.

If you approach this process seriously, you will be significantly more likely to succeed and position yourself to make this a full-time profession, if that is your desire.


Debt can be used to purchase real estate. It’s nearly hard to accomplish that with a business. Trying to acquire stocks with debt is nearly impossible. You can, but it’s not from a bank. A bank will not lend you money to buy shares. That is why real estate reigns supreme.

Plan it, execute it, and earn long-term profits by using loans to buy real estate or even offering renting services.

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PenFed Personal Loans Review 2022 – Forbes Advisor

PenFed Personal Loans Review 2022 – Forbes Advisor

The best personal loans offer competitive rates, flexible loan amounts and a wide range of terms. Here’s how PenFed personal loans stack up against other popular lenders:

PenFed vs. Navy Federal

Navy Federal offers two types of personal loans. Its basic personal loan includes terms of up to 60 months and loan amounts ranging from $250 to $50,000; its home improvement personal loan has terms of up to 180 months. If you plan on using your funds for home improvement projects, Navy Federal may be your best option.

However, Navy Federal charges higher interest rates than PenFed, with a minimum rate of approximately 7% compared to PenFed’s 6%. Membership criteria for Navy Federal are also stricter than PenFed. To become a member, you or one of your family or household members must have ties to the armed forces, Department of Defense or National Guard.

PenFed vs. USAA

The maximum loan amount available through USAA is $20,000—far less than what PenFed offers. Term lengths for a USAA loan range from 12 to 84 months but also depend on how much you want to borrow. Unlike PenFed, you must be a current or former military member or family member to be eligible for USAA membership.

Related: USAA Personal Loans Review

PenFed vs. SoFi

SoFi offers personal loans ranging from $5,000 to $100,000, which is much higher than PenFed’s $50,000 limit. SoFi’s starting interest rate is also lower than PenFed’s but is available only to highly qualified applicants.

If you need to borrow a large amount, SoFi may be a better option. However, if you need less than $5,000, PenFed’s $600 minimum limit may be beneficial to you.

Related: SoFi Personal Loans Review

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Upstart Personal Loans Review 2022 – Forbes Advisor

Upstart Personal Loans Review 2022 – Forbes Advisor

The best personal loans offer competitive rates, flexible loan amounts and a wide range of terms. Here’s how Upgrade personal loans stack up against other popular lenders:

*Example: A $5,900 loan with an administration fee of 4.75% and an amount financed of $5,619.75, repayable in 36 monthly installments, with an APR of 29.95% would have monthly payments of $250.30. If approved, the actual loan terms that a customer qualifies for may vary based on credit determination, state law, and other factors. Minimum loan amounts vary by state.

Upstart Vs. Upgrade

Upstart and Upgrade are designed to be able to lend to borrowers with less than good credit. While Upstart’s minimum recommended credit score requirement is 600, Upgrade’s is 580. If you qualify for Upstart, you may be able to receive larger loan limits—up to $50,000. However, Upstart only offers two terms—three and five years—whereas Upgrade offers terms between two and seven years. The best provider for you depends on how much money you need to borrow and how quickly you want to repay it.

Related: Upgrade Personal Loans Review

Upstart Vs. Before

Similar to Upgrade, Avant’s recommended minimum credit score is 580, 20 points less than Upstart. Again, this makes it a solid option for borrowers who don’t have excellent credit but still need access to financing. What’s more, Avant offers more repayment options compared to Upstart. If you are approved for a loan with Avant, you’ll have access to terms between two and five years, depending on your credit score and other factors.

Related: Before Personal Loans Review

Upstart Vs. Wells Fargo

Unlike Upstart, which is an online lender, Wells Fargo is a traditional bank. Applying for a personal loan through a bank like Wells Fargo is typically a good idea if you have an existing relationship with it. Wells Fargo offers personal loans between $3,000 and $100,000 with terms of one to seven years. Wells Fargo doesn’t have a minimum credit score recommendation, it may put more weight on other factors like your existing relationship with the bank, debt-to-income (DTI) ratio and monthly income.

Related: Wells Fargo Personal Loans Review

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Solar Loans Guide (Rates, Borrowing Tips & More in 2022)

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Solar Loan Basics

So, how do solar loans work, exactly? In essence, they operate in the same way as any typical loan for a home or car would: After selecting a provider and solar panel type to install, you take out the loan to purchase a solar energy system and repay the borrowed money over time.

The energy savings provided by the solar panel system, plus the federal solar tax credit, can be used to pay back that loan plus a bit of interest. The typical solar loan payback period ranges between five and 10 years, allowing a borrower to enjoy over a decade of free renewable energy generated by their system after paying it off.

Solar lending comes in many different forms and can finance 100% of the cost of a solar installation. Many loan providers offer low monthly payments or zero-money-down options depending on your situation. Here are the most common types of loans:

  • Year unsecured personal loan
  • HAS home equity loan gold line of credit
  • In-house solar financing through your solar installation company

For the most part, the terms and conditions of solar borrowing reflect those of any other standard loan. More specifically:

  • Securing a lower interest rate means having a lower overall cost to borrow.
  • A shorter loan term generally means higher monthly loan payments but a lower overall cost to borrow.
  • The loans available to you will vary in interest rates, term lengths, loan amounts, credit requirements, etc.

Overall, solar loans provide a wonderful opportunity for customers to enjoy the perks of system ownership without having to spend an uncomfortable amount of money upfront. Though the overall value loans provide is slightly lower than a cash purchase, the overall savings are significantly greater than a solar lease (as pictured below).

Savings are estimated for a medium-to-large sized home and will vary based on energy use.

Which Is Better: Solar Loan or Solar Lease? What’s the Difference?

Loans and leases are very different, starting with the ownership of the solar panels themselves. When you lease a solar energy system, your solar provider retains ownership. This allows your provider to enjoy the benefits of ownership, namely, cashing in on the federal tax credit.

Leasing solar equipment can also complicate selling a home, and getting out of a solar lease comes with hefty cancellation fees. In our experience, most solar horror stories result from unethical solar companies pushing leases on unassuming customers under the guise of “free solar panels.” Customers can end up trapped in a bad contract with no way out.

Don’t let that scare you off of a solar lease, however, if that’s what you can afford. Just be sure to do your research. Though solar leases can save customers money and lower their reliance on fossil fuels, the long-term value of a solar lease is far lesser than the long-term benefits of system ownership. When you cover your solar energy system cost with a loan, you can still enjoy the following:

  • A return on investment (ROI) through energy savings
  • Value added to your property from solar
  • Money back via the federal solar tax credit
  • Local tax incentives for system ownership, including property and sales tax exemptions

If you are still researching how much a solar system would cost for your home, you can click below to connect with an EcoWatch-vetted installer and get a free estimate.

How to Choose the Right Solar Loan

There are a number of factors to keep in mind when considering the best solar loan for your needs, including:

  • Monthly payment amount: If you end up choosing a shorter loan term (ie, a loan that you must pay off in a shorter amount of time), your monthly payments will probably be higher. The overall cost of the loan will be lower, but it’s nevertheless important to consider the impact on your household budget.
  • Down payment amount: Depending on the loan you choose, you may or may not be required to put down an initial payment on the solar panels. Generally, larger down payments will mean lower interest rates and a more valuable loan overall.
  • Fees: Some solar lenders may charge prepayment penalties or monthly fees in addition to your monthly principal and interest payments. Always make sure you get fee information upfront, so as to ensure there are no surprises on your loan statement.

Secured Vs. Unsecured Solar Loans

Another important factor to consider is whether you’ll want a secured loan or an unsecured loan. Let’s break it down:

  • Secured loans are usually connected to some piece of collateral, such as a piece of equity in your house; this provides the lender with some protection. If you fail to make your payments, the lender can claim this piece of collateral. Because the lender has some insurance, secured loans usually offer lower interest rates and more favorable terms overall.
  • Unsecured loans do not offer any collateral or security provisions to the lender. They represent a greater risk on the lender’s part, and therefore come with higher interest rates and less flexibility.

A secured loan is generally the smarter choice when possible. However, if you don’t have enough equity in your home (or aren’t in a place to risk it), an unsecured loan may be the wiser decision.

Solar Panel Loan Rates: How Do I Find the Best Rate?

Confident you know the best type of loan for your situation? Now comes securing the lowest interest rate possible. Most solar loan interest rates, such as those from lender LightStream, range from 3.99% to 16.99%. But it is possible to get lower rates. Here are a few tips to keep your rates as low as possible when financing a solar panel system:

  • Shop around: It’s usually best not to go with the very first lender you find. Spend some time shopping around and comparing rates. Most lenders will give you a free quote that’s good for a number of days while you compare offers from other companies. Have a plan before you start getting quotes.
  • Have someone co-sign: Having a co-signer on your loan — especially one with excellent credit — makes a lender far more likely to lower your interest rate.
  • Improve your credit score: The higher your credit score, the lower your interest rate will be. Small changes to your credit score before getting a quote can save you thousands in the long run. Here are a few tips to do so:
    • Pay back any old debts and credit card balances
    • Confirm your revolving credit limit is at its maximum
    • Be sure not to miss any monthly bill payments
    • Don’t open any new credit cards near or during the process of applying for a solar loan

Local Solar Loan Programs

Given the undeniable environmental and financial benefits of solar energy efficiency, federal and local government bodies often launch programs to help make solar financing more feasible for their residents.

Homeowners who are interested in going solar should also know about Property Assessed Clean Energy (PACE) loan programs. According to the Department of Energy, PACE programs “allow a property owner to finance the up-front cost of solar energy or other eligible improvements on a property and then pay the costs back over time through a voluntary assessment.”

What makes these programs unique is that the assessment is tied to the property itself, not to the individual. PACE financing legislation exists in some form in 36 states plus Washington DC A handful of states have separate solar loan programs and rebates for homeowners. Here are some current programs worth knowing about:

State Solar Loan Program Maximum Loan Amount Interest Rate Longest Repayment Term
Connecticut Energy Conservation Loan Program $25,000 0% to 7% 12 years
louisiana Home Energy Loan Program (HELP) $6,000 2% 5 years
Michigan Michigan Saves Home Energy Financing $50,000 4.44% to 7.90% 15 years
North Carolina State-regulated municipal loan options Varies Up to 8% 20 years
Ohio Energy Conservation for Ohioans (ECO-Link) Program $50,000 3% APR reduction on bank loans 7 years

Additionally, certain cities, municipalities and even utility companies may offer low-interest solar loans. We recommend researching your specific area before turning to banks or credit institutions. The DSIRE database is a helpful resource.

Where to Get a Solar Loan

If your state doesn’t have its own solar energy loan program or you’re not eligible for enrollment, there are plenty of other places to get solar loans. Any of the best solar companies will be sure to assist you in finding a loan partner, but some other places to check include:

  • credit unions
  • lending institutions
  • In-house financing options through your solar installer

Some installers use a third-party solar lender, but some, such as Blue Raven Solar, offer innovative financing directly. We can’t emphasize enough the importance of shopping around and comparing rates and offers before deciding on which solar lender is the best fit for your needs.

To get started with a free quote and find solar loan information from a top solar company in your area, you can click below to connect with an EcoWatch-vetted installer and get a free estimate.

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Karsten Neumeister

Solar Expert

Karsten Neumeister is a solar energy specialist with a background in writing and the humanities. Before joining EcoWatch, Karsten worked in the renewable energy sector of New Orleans, focusing on solar energy policy and technology. A lover of music and the outdoors, Karsten might be found rock climbing, canoeing or writing songs when away from the workplace.

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Personify Financial Personal Loans Review 2022 – Forbes Advisor

Personify Financial Personal Loans Review 2022 – Forbes Advisor

Personify Financial Vs. Upgrade

Personify Financial and Upgrade are designed for borrowers with less than good credit. If you qualify for Upgrade, you may be able to receive larger loan limits—up to $35,000. Upgrade also offers longer terms, with loans running from two to seven years. The best provider for you depends on how much money you need to borrow and how quickly you want to repay it.

Related: Upgrade Personal Loans Review

Personify Financial Vs. Before

Similar to Personify Financial, Avant is designed for borrowers with low credit scores, requiring a minimum credit score of 580. What’s more, Avant offers more repayment options compared to Personify Financial. If you are approved for a loan with Avant, you’ll have access to terms between two and five years, depending on your credit score and other factors.

Related: Before Personal Loans Review

Personify Financial Vs. Upstart

Upstart targets customers with credit scores of at least 600 and offers personal loans from $1,000 to $50,000. However, Upstart only offers two terms—three and five years—whereas Personify Financial offers terms between one and four years. If you have a score of at least 600, we recommend Upstart as it’s a more affordable option.

Related: Upstart Personal Loans Review

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Prosper Personal Loans Review 2022 – Forbes Advisor

Prosper Personal Loans Review 2022 – Forbes Advisor

The best personal loans offer competitive rates, flexible loan amounts and a wide range of terms. Here’s how Prosper personal loans stack up against other popular lenders:

Prosper vs. SoFi

SoFi offers loan amounts from $5,000 to $100,000, making it a good option for borrowers who need more money than is available through Prosper. SoFi’s personal loans also offer competitive APRs starting around 6% with autopay and increasing to around 20%, much lower than Prosper. SoFi also does not charge any origination fees, prepayment penalties or late fees.

Related: SoFi Personal Loans Review

Prosper Vs. LightStream

Personal loans offered through LightStream range from $5,000 to $100,000—twice the maximum loan amount available from Prosper—depending on the loan purpose. LightStream APRs are also much more competitive, starting below 3% for eligible loan types with autopay and maxing out at around 20%, which is dependent on the purpose of your loan and creditworthiness.

What’s more, LightStream loan repayment terms are more flexible than those available to Prosper borrowers, and extend from just two to 12 years, depending on your loan purpose. Borrowers are also not charged origination fees or prepayment penalties.

Related: LightStream Personal Loans Review

Prosper Vs. Upgrade

Upgrade personal loans are available from $1,000 to $50,000, similar to the loan amounts offered by Prosper. Upgrade’s APRs are also comparable to those available through Prosper and range from around 6% to around 36%. That said, Upgrade offers a much more extensive range of loan terms than Prosper (24 to 84 months) and a lower minimum credit score requirement—just 580.

Related: Upgrade Personal Loans Review

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Auto Loans, Credit Cards, and Personal Installment Loans: Who Lends What?

Auto Loans, Credit Cards, and Personal Installment Loans: Who Lends What?

TransUnion, a top credit reporting agency, published numbers on lending sources. Spoiler Alert: Banks do not dominate every sector regarding consumer lending. In its Market Perspectives Report, covering Q4 2021, TransUnion presents a view of market share for five consumer loan types. Interestingly, four lender categories, credit unions, banks, finance companies, and “other,” balance their consumer lending portfolios to address the US market. The asset mix is ​​essential for many financial institutions because it reflects their risk tolerance.

First, let’s get shelter products out of the way because they are collateralized with property liens that protect lenders. In mortgages, 50% of the market falls to banks and 6% to credit unions. Specialized lenders, including fintechs, have a 40% market share, with 4% falling to the “other” category. When it comes to home equity lines of credit, also known as HELOC, the market shifts substantially, with banks having an 82% share and credit unions owning 16%. Finance companies have a 2% share, and the “other” category is not on the boards.

Now comes auto loans. Here banks play a less significant role, with only a 20% market share, overshadowed by 26% market share credit unions. Finance companies, such as Nissan Credit or Ford Motor Credit, own the market with a 41% share. The “other” category, which includes second-chance-finance companies and buy-here-pay-here lenders, owns 13% of the market.

In credit cards, banks dominate the mix, driven by top financial institutions such as the ones mentioned here. You find that banks have an 81% market share, and credit unions own 7%. Finance companies hold 3% of the volume and the “other” category 9%.

Credit card issuers should note that finance companies, including fintechs, hold a 41% share in consumer lending. Banks are 10% behind with a 37% share. Credit unions have three times the banks’ share with a 21% market share, and the “other” category is barely on the charts.

The share mix is ​​something for banks to learn from the market. For example, as noted in our annual review of credit card profitability, credit cards are much more profitable than consumer banking; in some years, the Return on Assets is three times as much. But when you balance a portfolio, with risks coming from different classes, consumer lending benefits households and the revenue per customer metric.

Overview by Brian RileyDirector, Credit Advisory Service at Mercator Advisory Group

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