A report last week from Experian Analytics points to a lowering trend in automotive loan delinquencies are declining which is encouraging news for terrible credit auto loans applicants
In the business
If you have bad credit you’ll find the latest report from Experian Analytics encouraging if you are thinking of applying for horrible credit auto loans.
We have tended to follow this type of news during nearly twenty years of being engaged in bad credit auto sales here at Auto Credit Express.
We also educate applicants about tote the note loans and cover the loan process to help reduce the chances of repossession.
It’s also important to understand the condition of the auto lending environment when applying for bad credit auto loans, which is why the latest information from Experian could be helpful to applicants.
The August 218, 2011 report begins with the headline, “Automotive delinquencies reach lowest level over the past year.”
It then goes on to state:
“For Q1 2011, automotive delinquency rates, as a percentage of balances, continue to show improvement in every performance range and are at the lowest level of any time during the past year. Year-over-year improvements of 16 percent, 25 percent and 29 percent were seen in the 30 to 59 days past due (DPD), the 60 to 89 DPD and the 90 to 180 DPD ranges, respectively.”
How this might affect bad credit auto loans
Taking this into consideration, these results could have the following effects on bad credit car loans:
• If the economy continues to improve (a big if) lender guidelines on loans should continue to ease, although interest rates won’t change much and down payments will still be required in order to finance a bad credit car.
• More customers entering the bad credit market means that lenders can continue to be selective in approving bad credit auto loans.
Knowing that, poor credit car loan customers should follow these tips:
• Know the contents of your credit report and your FICO scores.
• Choose a reasonably-priced car and with a payment no more than 10% to 15% of your gross monthly income (the lower the better).
• The more cash you have for a down payment, the better. Not counting new car rebates or dealer cash, 15% or more will increase your chances of an approval.
As we see it
Be aware of what’s going on with bad credit auto loans. Also, if you’ve been turned down for a conventional car loan it doesn’t mean your only choice is a tote the note dealer.
At Auto Credit Express we place applicants with bad credit with dealers that can help them with their auto credit and get approved for poor credit car loans.
So if you’re serious about getting your car credit back on track, you can begin the process by filling out our online auto loans application now.
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