Chart of the Week: Is It Easy To Get A Loan?
Interesting chart showing rejection rates by loan type over the past 18 months. It provides an effective way to show the difference between secured (mortgage and auto loans) and unsecured loans (credit cards) and why lenders think differently about them. Here are a few questions to ask students:
1. What loans have the lowest rejection rates (rejection means the lender says “no”)? Why do you think this is the case?
2. What loans have the highest rejection rates (are the hardest to get)? Why do you think this is true?
3. Why do you think it is harder to get a credit card increase than it is to get a credit card?
About the Author
Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.