Latest Equifax report shows more auto loans are being made even to credit challenged buyers which is positive news for people applying for poor credit car loans
More good news
If you're in the market for a bad credit car there was more good news from Equifax yesterday that you should know about.
At least we think you should since here at Auto Credit Express we've been involved in bad credit auto sales for nearly twenty years. During that time we've worked with hundreds of buyers to get them approved for bad credit auto loans.
This is because a tote the note dealer won't help their credit problems. We also walk them through the loan process (to prevent repossession) and applicants outside our retail area can fill out an online auto loans application to find a nearby that can help them.
But before applying for terrible credit auto loans it also helps to know what's going on in the car finance business and this week Equifax had more good news.
According to their May 2011 National Credit Trend Report, car loans made in March of 2011totaled $1.8 million, the highest total since the summer of 2008 and even more than the “cash for clunkers” program generated in the summer of 2009.
"While some sectors of the economy – most notably housing – continue to struggle, the auto lending sector has displayed positive gains based on loosening of credit to both prime and subprime borrowers paired with improvements in consumer payment behavior, which is reflected in the declining number of auto loan delinquencies," said Michael Koukounas, Senior Vice President of Special Client Services for Equifax.
Bad credit auto loans
Equally important is the fact that auto loan delinquencies and write-offs are nearing pre-recession levels as both continue to improve in 2011.
Taking all this into consideration, here are some tips we suggest bad credit buyers should follow:
• Go over your credit report, know the information it contains and be prepared to explain any negative entries.
• Know your FICO scores.
• Pick an affordable car with a monthly payment that is no more than 10% to 15% of your gross monthly income (the lower the better).
• Be prepared with a down payment in either cash or real trade equity (the higher the down payment the better your chances). Not including rebates or dealer cash, 15% or more will increase your chances of an approval for a bad credit car.
As we see it
Bad credit applicants need to be aware of what is going on in the auto lending industry. Even 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 specialize in placing poor credit customers with dealers that can help them get approved for poor credit car loans.
So if you're serious about getting your car credit back on track you can begin now by filling out our online auto loans application.