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Experian Report Boosts Outlook For Bad Credit Auto Loans

A recently released report from Experian Analytics shows that the delinquency rate for auto loans declined once again. This should be good news for people who need a bad credit auto loan.

Understanding the lending climate can help buyers know when it is best to apply for a poor credit auto loan. With a decline in delinquencies, can come a loosening of lending standards, allowing institutions to lend to lower credit scores. The report showed delinquencies of 30-59 days had dropped by 16% and delinquencies over 180 days (those in repossession) had dropped 29%.

Despite the good news in delinquency rates, borrowers need to take a few steps to help improve their chances of being approved.

  • Get a credit report and FICO score. Correct any incorrect information.
  • Shop for an affordable small to mid-size car. This means a vehicle with a sale price low enough that you can put a 20% down payment on the car.
  • Only buy a car if the payments account for less than 16% of your monthly income.

With a little research and planning, even the worst credit scores can find bad credit auto loans to fit their needs.

About the Author

The author has many years of experience in automotive finance and insurance. However, each consumer's situation is unique. It is best to contact a finance specialist for further assistance.
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