Credit Access
» Credit Access, Volume 8, Issue 7, 2008
If respondent has a line of credit and their financial institution changed the size, interest rate, collateral requirements, or other terms of the line, such as requiring a personal guarantee of their largest credit line.
11b1. What did the institution do?
| Response | ||||
|---|---|---|---|---|
| 1 | Cut line size | 18 | ||
| 2 | Raised interest rate | 27 | ||
| 3 | Increased collateral requirements | 12 | ||
| 4 | Cut it off, cancelled it | 0 | ||
| 5 | Required added deposits, aka, “compensating balances” | 0 | ||
| 6 | Required personal guarantee | 8 | ||
| 7 | Cut interest rate | 18 | ||
| 8 | Other | 15 | ||
| 9 | DK/Refused | 3 | ||
| Total (%) | 101 | |||
| N | 78 | |||
Notes: Eighteen (18) percent of small employers who have a line of credit and their financial institution changed the size, interest rate, collateral requirements, or other terms of the line, such as requiring a personal guarantee of their largest credit line, cut the size of the credit line.
