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...re becoming low, which is causing lenders to view them as high risk borrowers. Low credit scores suggest a low level of creditworthiness, which means that the borrowers have a high potential of not paying back the loans. Lenders are giving such borrowers higher interest rates, fees, low loan amounts, and larger minimum payments. They do so with the goal of trying to accumulate as much profit as they can from the borrowers for the time that they are successfully making payments on the loans. However, some lenders are denying loans to high risk borrowers to protect themselves from experiencing a loan loss. The failing credit industry is causing consumers to pay high interest on their loans. For this reason, consumers are struggling making their mortgage payments and as a result, an increasing number of consumers are becoming more likely to have their houses foreclosed.
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