Why Access to Credit is Important
Uncertain economic conditions make it hard for already financially burdened U.S. consumers to meet their basic needs and prepare for future costs. Surveys estimate that almost half of Americans have less than $500 in savings to cover emergency expenses, and despite the right-sizing of the Consumer Financial Protection Bureau, regulatory uncertainty for businesses and consumers alike at both the federal and state levels persists.
Together, these pressing issues underscore the need for increased access to credit for consumers of all economic standings. Why is access to credit so important? For folks with less than perfect credit, the under-banked, or who simply prefer the structure of a personal loan to address unexpected home or car repairs, the purchase of a new refrigerator – and in this heat wave – a new air conditioning unit – the options for financial flexibility may be limited.
So, it’s essential to maintain and expand access to safe, affordable credit. As Eric Bowers, Executive Vice President of Regional Finance, notes, “It is really important everyone in America has that same dignity, where they can handle their financial transactions easily, simply, and quickly to meet their needs.” You can view his full commentary here.
Many AFSA members bring a personal sense of responsibility and relational touch to their everyday work. As Sheri Wilford, President of LPL Loans, notes, one of the favorite parts of her job is hearing customers’ individual and unique stories, and LPL’s ability to assist them.
Julie Ausland, President and COO of Cashco Financial, says, much of the success of lenders comes from creating personal relationships with customers. She recognizes that many of these individuals need access to credit in a timely manner.
Dan Walters, CEO of Credit Central LLC, describes this as a “Local presence with employees that have a vested interest in helping those communities.”
An important factor that enables AFSA Member Companies to be there for their customers is sound rules of the road that provide certainty … certainty that they can serve their customers in a clear and transparent manner, and certainty for the customer that they will be protected. Knowing that the regulatory environment will be consistent and on a level playing field ensures that consumers have greater access to the forms of credit they want or need. As our Member Companies point out, in setting the rules of the road it’s important for policymakers to focus on the needs of the consumer, not simply the industry they desire to regulate.
July 1st, 2025
