Iowans See Credit Crunch Trickling Down

(photo by David Wallace, The Gazette)

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By Becky Ogann

Story Created: Nov 3, 2008 at 10:52 AM CST

Story Updated: Nov 3, 2008 at 10:52 AM CST

DES MOINES (AP) - Iowans applying for credit are seeing less favorable terms than just a few months ago, as the national credit crunch begins to trickle down.

Iowa State University Assistant Professor of Finance Burt Porter says banks are making it more difficult for borrowers with less-than-perfect credit ratings to get a loan.

He says those that do get a loan are facing higher interest rates regardless of their credit rating.

Iowans dependence on credit is as great as ever, though. According to the Experian National Score Index, the average consumer debt in Iowa, including things like credit cards and car loans, but not mortgages, rose to $13,664 in August, up 5.3 percent from $12,981 last year.

Over the same period, the national average rose 5.0 percent, to $17,038.

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