An increase in auto loan approvals after an economic downturn usually starts with the higher credit scores. In recent weeks, there has been a jump in the number of approved loans for lower credit scores as well.
So far in April that trend is continuing. Early data indicates that the average FICO scores approved for new car loans in the first 10 days of the month has fallen to 673.7 and 14% of new car buyers had a credit score less than 670.
Great for new car buyers, right? Well, the average score approved for used car loans was only 606.8 and 40% of all used car buyers had a score less than 670. That is good news for people with credit problems.
As the economic fog begins to clear for many banks, the purse strings are loosening. In today’s financial world credit is essential, so everything is looking better for the remainder of 2011.