The burst bubble of the housing loan failures will affect more than just home loans. Banks - large banking conglomerates - have been sold down river due to their own insolvency. This all brought about by accumulation of risky loans and bad credit debt made in the last 10 years or more have pushed even the strongest financial institutions over the brink.
What banks that are left for you to consider getting a loan or credit card through, will have tighter policies and you can expect to go through weeks of processing for just a home improvement loan. As in the 1990's and before, you will need to show a history of steady income from a job or business, more than likely two or more years of W-2 and tax records for the 9 - 5er plus 20% or more down payment.
It may be tougher for business owners who are typically treated more rigidly than most taxpayers. Business owners will probably have to bring not only tax records but cash money of 30% down or more to prove their ability to pay.
As a matter of fact, some of us may remember our parents or grandparents saying that they couldn't even apply for a loan until they could prove that they had assets, whether liquid or otherwise, equal to the loan! Bankers wouldn't even consider loaning to someone who didn't have proof of ability to repay the load.
It was sound thinking and it worked well. But then some more liberal bankers decided there was a whole group of people who were not getting the opportunity to grab the American dream - to own their own home.
Times changed from our parents’ day. The rules for loaning became more and more lenient so that folks could put 0 down and relatively small incomes could qualify for a loan. Bankers were counting on these good folks to improve their financial status over the length of the 5 year ARM, or whatever, loan and thereby be able to pay the increased rate as it came due. Sad to say, most of these home owners couldn't or didn't improve their status and thus loans were defaulted by the thousands, leaving the banks with bad debt.
Yet the folks who are going to feel it most aren't those who already have credit. It is the young man just getting his first job and wanting to get a credit card of his own. In such cases, he would be considered a bad credit risk, i. e. no established credit history. Regardless of whether the proposed banking bail-out goes through, you can forget bad credit loans because no institution will want to take the risk. We are talking years before we see the light again.
If you're plagued by debt or desire to apply for a loan, you need to learn to manage your money better. Rather than always thinking you can fall back on a balance transfer credit card which you used to be able to get for a dime a dozen or a consolidation loan, you will have to fall back on good old fashioned budgeting.
You may even need to sell off something to bring those credit debts down. In any case, tighter belts are in order for all concerned. Take the first step and clean up your credit using tips you find at http://www.debtcredittips.com - and then put a budget into place for your future financial success.