But business are not the only ones having a hard time getting approved for loans. Consumers are having a hard time getting approved for mortgages, auto loans, personal loans and credit. That’s resulting in even less spending simply because people with even good credit cannot get the money they need like they used to.

Eventually things will ease and consumers will be able to get approved for bank loans, but in the meantime people should take this as an opportunity. An opportunity to get personal finances back on track, increase credit scores and credit worthiness, and remember what it was like to save money and pay in cash.

Just like those who weathered the Great Depression, a very valuable lesson is to be learned here. Don’t spend more than you make, and don’t over-extend yourself with credit. If you can’t afford it, then you shouldn’t be able to buy it. After the Great Depression, there was a resurgence of saving money, living within your means, and a value in understanding one’s personal finances. While the lack of availability of money from lenders has an incredibly dramatic effect on the economy, there is some good that comes out of this.

That’s not to say that nobody is getting approved for loans. There will always be private lenders who are looking to put their money in other places than the stock market and can work out a deal with you. Despite the tightening of the belts at the major banks, they are still lending money. It just requires a better than average credit score and a sound personal balance sheet. If you can walk into a bank with both of those, you can get approved for a loan at pretty attractive rates. Until then, consumers may need to be a little creative and resourceful in coming up with the cash they need.

Generally, individuals cannot get approved for prime lending through a traditional bank because of a bad credit score or lack of employment history. Particularly after the subprime mortgage crisis in America, it has become increasingly difficult for people with even modest credit scores to get approved for a mortgage. That’s leaving millions of people having to seek alternative lenders in order to get the cash needed to buy a home.

What you need to know about subprime mortgage lenders is that their fees and terms are not particularly favorable. Because they are assuming more risk by lending to someone who demonstrates poor creditworthiness, you can expect to pay significantly more in interest on your loan. In addition, they may require larger down payments, which reduces their risk in home abandonment since you’ll have a greater equitable interest in making payments on time to keep your home.

In addition to higher interest rates and bigger down payments, be sure to clearly understand all other terms of a mortgage loan through a subprime lender. There may be additional fees, early repayment penalties, and higher than average late payment fees. Before putting ink on any mortgage contract, be sure to compare rates and offers and not to get too caught up in their offer.

While subprime lenders have made it possible for millions of people to purchase a home, that doesn’t necessarily make it the best option. Never buy more than you can afford, and be sure to do your due diligence when considering various offers. Realize too that subprime mortgage lenders don’t typically identify themselves as such, but if you are repeatedly denied from a traditional bank, than chances are that is what you are dealing with.