Mar 06, 2010 09:54AM

Great news for potential car buyers.

Great News as reported by the Associated Press. For those customers who have had problems with getting financing secured for an auto loan, it looks like things should start to get a little easier.

TransUnion: Auto loan delinquencies decline in 4Q
(AP) ? 4 days ago
NEW YORK ? TransUnion said Monday that customers at least 60 days past due on repaying auto loans fell 6 percent during the fourth quarter compared with the same period a year earlier.
The 60-day delinquency rate on auto loans dropped to 0.81 percent. The delinquency rate was unchanged from the third quarter.
Auto loan delinquencies could be improving because of more favorable terms and deals in recent months for new cars, including the government's Cash for Clunkers program, Peter Turek, TransUnion's automotive vice president in its financial services business unit, said in a release.
The improving trends in auto loan delinquencies came as more customers fall behind on repaying mortgages and credit card debt.
The credit data provider said 6.89 percent of mortgage borrowers were at least two months behind on payments during the fourth quarter. It was the 12th straight quarter the delinquency rate rose.
The delinquency rate, which is seen as a precursor to foreclosures, was 6.25 percent during the third quarter and 4.58 percent during the final quarter in 2008.
Mortgage delinquencies and defaults remain a major problem facing the economy. A collapse in home sales and prices, as well as rising defaults, helped push the country into recession. Signs of a recovery in the market have been slow and uneven in recent months.
Credit card delinquencies also rose. Customers at least three months late on making a credit card payment rose to 1.21 percent during the final three months of 2009. However, average credit card debt fell to $5,434 from $5,729 during the same quarter a year earlier.
TransUnion tracks the data by randomly sampling 27 million anonymous consumer records every quarter from its national consumer credit database.

Nov 02, 2009 12:48PM

Positive Signs in a credit challenged car loan market

In the third quarter of 2009 I have seen some very positive signs for customers with less then perfect credit. It seems that most of the sub prime finance companies are starting to see their portfolios stabilize and get back to somewhat normal delinquency and charge off rates. Along with this stabilization rates have started to slowly drop and advances are slowly rising. The approval ratio where I am located at, has been steadily rising for the last three months. Auto finance companies are seeing the worst is behind us and gearing themselves up to make auto loans for customers with bad credit affordable again.

For the consumer now is about the perfect time to jump feet first into rebuilding their credit with a car loan. The used auto market is starting to stabilize and actually soften a little. Pricing is dropping for the consumer on the retail end. With these two key components working in the customers favor finding an auto loan with bad or shaky credit might be the least expensive now, as anytime in the last two years.

As always remember today your credit counts, now more then ever.The key to saving time and lots of frustration is being prepared and knowing what to expect when you make that trip to get your next car loan. Check back for more information on auto financing and your credit. If you are in need of a car loan visit our website at http://www.getmeachevy.com/ and apply today.

Oct 09, 2009 01:28PM

Bankruptcy Filings Surge Past One Million in First Nine Months of Year

(As reported at fi-magazine.com)
ALEXANDRIA, Va. ? Consumer bankruptcies totaled 1,046,449 filings through the first nine months of 2009, making it the first time since the 2005 bankruptcy overhaul that filings have surged past the 1 million mark during the first three quarters of a year, according to the American Bankruptcy Institute (ABI).
The filings for the first three quarters of 2009 (from Jan. 1 to Sept. 30) were the highest total since the 1,350,360 consumer filings reported in the first nine months of 2005. The filings are based on data from the National Bankruptcy Research Center.
"Bankruptcy filings continue to climb as consumers look to shelter themselves from the effects of rising unemployment rates and housing debt," said ABI Executive Director Samuel J. Gerdano. "The consumer filing total through the first nine months is consistent with our expectation that consumer bankruptcies will top 1.4 million in 2009."
The September 2009 consumer filing total reached 124,790, a 41 percent increase from the 88,663 consumer filings in September 2008. The September 2009 filings also represented a 4 percent increase over the 119,874 filings in August 2009, and represent the fourth highest single month since the 2005 law change. Chapter 13 filings constituted 28 percent of all consumer cases in September, unchanged from the August rate.

Sep 01, 2009 10:22AM

C.A.R.S. program comes to an end

The governments C.A.R.S. program a.k.a. Cash for Clunkers was even more of a success then expected. I personally helped many people that had not so perfect credit get into new vehicles. However due to technicalities I saw a lot of people not qualify for the program. These folks actually may fair pretty good in the up coming months. Due to the laws of supply and demand customers who have decent vehicles to trade in will receive higher appraised values because of the short supply of inexpensive used vehicles on dealers lots. I have seen GM put extra incentives out to help keep sales surging. Even running a subvented rate program with one of the largest sub prime lenders in the world to help customers with bruised credit be able to afford new cars. Now is a great time to trade that old car in for something a little newer and also get in on some of the excellent auto loans being offered right now.

As always remember today your credit counts, now more then ever.The key to saving time and lots of frustration is being prepared and knowing what to expect when you make that trip to get your next car loan. Check back for more information on auto financing and your credit. If you are in need of a car loan visit our website at http://www.getmeachevy.com/ and apply today.

Apr 23, 2009 07:04AM

Should you pay off old bad debt?

Many times I hear people say paying off their old bad debt is going to help rebuild their credit. This is not always the case and sometimes can cause more harm then good to your credit bureau. Due to the scoring models used in calculating a credit score, paying old bad debt can adversely impact your score. When deciding to take care of bad debt know how to settle and what to pay in order to get the most bang for your buck.

I have been helping clients that have credit problems get car loans for many years now. During this time I have learned that the age of your bad debt plays a major role in determining your credit score. I have seen people with lots of bad debt that is old score out better then a person with less debt that is more recent. A credit scoring system is tiered and when delinquencies they have less negative effect. Sometimes even letting your bad debts age to the point of falling off your bureau can have a negative affect on your score because of this credit tier system.

Knowing what to pay and to pay it is very important to rebuilding your credit. When an old account that went bad shows a zero balance paying that account usually will not help your credit score. It may actually lower your score by showing recent activity. Settling with a creditor for less then amount due will usually have a negative impact on your score. You may have paid the debt however did not pay all that was owed. It is important to know how to settle with creditors before making your settlement. Remember you have more leverage when you pay a lump sum then when making a payment plan. Always request a creditor mark account closed zero balance instead of settled for less then amount due. Just contacting a creditor will refresh this old debt so be ready to handle it as soon as possible to help avoid any adverse effects.

As always remember today your credit counts, now more then ever.The key to saving time and lots of frustration is being prepared and knowing what to expect when you make that trip to get your next car loan. Check back for more information on auto financing and your credit. If you are in need of a car loan visit our website at http://www.getmeachevy.com/ and apply today.