"As the old saying goes, banks are happy to make loans to anyone who can prove they don't need them," observes Alexander Green.

The editor of The Oxford Club explains, "But what do you do if you're a blue-collar worker with a checkered credit history, an uncertain unemployment picture and no high-quality collateral? These folks are turning to pawnbrokers such as EZCorp (EZPW).

"Based in Austin, EZCorp operates more than 1,000 pawnshops and payday loan storefronts in the United States, Canada and Mexico. It also has equity stakes in pawnshops in Britain and Australia.

"Credit card demand has exploded in recent years. Today, credit cards are responsible for over $2.5 trillion in transactions each year," notes Ian Wyatt.

The editor of Top Stock Insights explains, "And no company is better positioned to capture the digital transaction market than Visa (V); further, investors have a window of opportunity right now to pick up shares at a great price.

"Different from credit card-issuers, Visa is shielded from the consumer credit troubles (such as delinquencies and defaults) because they don't lend to consumers.

For 25 years, Steven Halpern, editor of TheStockAdvisors.com, has surveyed the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is one of 100+ ideas in the Best Stocks for 2008 report.

"My favorite conservative stock for 2008 is Mastercard (NYSE: MA)," says Ken Kam, who first added the stock to the 'Best Ideas' portfolio of his Marketscope newsletter in June.

"With the financial sector getting killed as the credit crisis expands, investors are scrambling for quality and safety in financials -- the largest sector of the S&P 500. Mastercard fits the bill because of the reasons we liked it in the first place -- no credit.

"Until recently, most investors thought of Mastercard as a credit card company. Its comparables were American Express, Capital One, and Discover -- all credit card companies that HOLD credit card risk on their balance sheets. Mastercard does not.

"Mastercard processes the transactions and charges an interchange fee. The credit crunch spiraling its way through the market is affecting consumers. Access to credit has dried up so it is difficult, if not impossible, to get new mortgages or home equity loans.

Do any companies benefit from growing default rates? Yes, says Paul Tracy. "As the supply of bad consumer debt swells, those in the business of buying and collecting on those loans have a more plentiful (and cheaper) pool of debt at their disposal."

The editor of StreetAuthority Market Advisor states, "Portfolio Recovery Associates (NASDAQ: PRAA) is one of the most attractive players in this particular niche. I believe that the current credit environment is actually a major benefit for the firm."

He explains, "Recovery Associates' business model is simple. The company buys defaulted credit card, auto loan and other debts from lenders. Because this debt is in default, PRAA pays just a few pennies for each dollar of debt it purchases."

Tracy continues, "As long as PRAA can collect a few pennies more than it pays for the debt, the company makes a solid profit. And PRAA has been doing just that for years."