DALLAS — As interest rates go up, so do the number of people who become "credit invisible."
That means they either have no credit score or an inadequate credit score to receive a loan from a bank.
WFAA found that more people are turning their family and friends for a loan, instead of traditional lenders.
Susanne Brunner explains:
"Hey do you have a few dollars I can use?"
That's a common question a lot of people are asking their loved ones.
In fact, the census bureau says more than 27 million people borrowed some money from family or friends, compared to a year ago.
People haven't fully recovered financially from the pandemic. Couple that with sky-high inflation and it creates a mess when it comes to needing and getting a loan.
There's a service that helps track borrowed money between family and friends during these hard times.
It's called Pigeon Loans, and its services are up big time from year to year.
"When you have a bit of inflationary pressure what we're seeing is a lot of people are hitting this breaking point where they're having to go to outside help and many are going to friends and family because their options are limited otherwise," said Kaben Clauson, Co-Founder of Pigeon Loans.
Clauson and his partner created the loan service company two years ago.
The goal was to make borrowing money more structured.
Clauson said most people are borrowing around $3,200, but that amount has been increasing recently.
In North Texas, it's easy to see why loans might be on the increase, whether they're from friends or through traditional lenders.
The median DFW home sales price rose to $426,000 in June, from $329,500 in June 2021, a jump of 29.3%. That's the largest year-over-year increase in the country.