Bad Credit Car Loans are Up

The latest news from Experian is that auto lenders are increasing their loans to subprime customers

Here to help you

If you’re currently considering applying for a bad credit auto loan, you may be wondering about the current lending climate for bad credit borrowers.

We get asked this quite frequently here at Auto Credit Express, where we’ve been working with credit-challenged car buyers to reestablish their car credit for the past twenty years. During that time, we’ve personally helped hundreds of retail buyers get financed while helping them avoid a tote the note dealer (buyers outside our area can now fill out a bad credit auto loan application on our web site) as well as advising them on the bad credit car loan process (so they don’t end up in repossession).

Bad credit lending

In answer the question about the current conditions in the subprime lending market, here is some information supplied by Experian Automotive’s AutoCount Risk Report:

Auto lenders increase lending to subprime consumers

Auto lenders appear to be less risk averse, as they continued to loosen credit during Q4 2010 for nonprime and subprime customers. Findings from a recent AutoCount® Risk Report show that the share of loans to credit-challenged new vehicle shoppers grew by 18.2 percent in Q4 2010 compared with the previous year. For subprime customers, the share of loans jumped from 5.6 percent to 6.96 percent, while the share of loans to deep-subprime customers increased from 1.44 percent to 1.74 percent.

Our take

For credit-challenged applicants, this means that subprime lenders continue to increase the number of bad credit car loan application approvals.

We also continue to offer this advice to our applicants:

•    Know your credit score and what’s contained in your credit report
•    Plan on a minimum of a 10 percent down payment either in cash or trade equity
•    Keep the loan term as short as possible
•    Finance a compact or midsize car and put off buying anything else until after you’ve reestablished your car credit.

Give us a shot

At Auto Credit Express, we specialize in placing customers with bad credit with dealers that can help them. These dealers are knowledgeable and work with a broad spectrum of lenders to ensure you have your best chance at getting approved for a second chance auto loan.

So if you are serious about getting your car credit back on track, you can begin the process right now by filling out our bad credit car loan application.

Posted on April 23, 2011 by in Auto Loans, Bad Credit
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