Smart Borrower Blog

Archive for the ‘Auto Loans’ Category

Federal Reserve Raises Rates to 8-Year High

Mar 15th, 2017 @ 12:41 PM by Amber Nelson

The Federal Open Market Committee – an arm of the Federal Reserve – raised its target interest rate today, the second increase in three months, with the rate now barely back up where it was eight years ago at the end of 2008. The Fed upped its federal funds rate to the range of 0.75 […]

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U.S. Auto Loan Industry Data Continues to Raise Red Flags

Feb 22nd, 2017 @ 10:11 PM by Amber Nelson

Even as U.S. sales of cars and trucks has risen to new heights in the past year, delinquencies on auto loans are also making records and the number of loans made to subprime consumers has jumped dramatically in recent years. At the end of 2016, Americans held almost $1.2 trillion in car loan debt, a […]

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U.S. Consumer Borrowing Growth Slows to 3-Year Low

Feb 15th, 2017 @ 1:39 PM by Amber Nelson

Even though American consumers continued to spend more money in December than they did in November, the increase was much lower than expected and the slowest pace since 2013. According to figures from the Federal Reserve, consumer debt increased by $14.2 billion in December 2016 from the month before. That is significantly below the $20 […]

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Credit Card, Auto Debt Delinquencies Rise in 3rd Quarter

Jan 11th, 2017 @ 9:22 PM by Amber Nelson

While still at historically low levels, U.S. consumer debt delinquency rates rose in the third quarter of last year, according to data from the American Bankers Association. The increases were led by jumps in auto loans and bank card loans delinquencies. The ABA Consumer Credit Delinquency Bulletin found that a composite ratio of delinquencies (late payments […]

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Subprime Auto Delinquencies Reach 6-Year High

Nov 30th, 2016 @ 1:32 PM by Amber Nelson

Even as delinquencies on other types of loans continue to fall, auto loans among those with poor credit are falling behind at an alarming rate. The number of delinquent subprime auto loans rose to its highest level since 2010 in the third quarter, according to the New York Federal Reserve. “This quarter, mortgage balance growth […]

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Subprime Auto Delinquencies Climb Close to Recession Peaks

Oct 5th, 2016 @ 1:04 PM by Amber Nelson

American consumers with bad credit are falling behind on their auto loans at an alarming rate, reaching levels not far behind their all-time highs during the Great Recession. According to data from Fitch Ratings, the 60 days or more delinquency rate on subprime auto loans rose in August to 4.86 percent, up 6 percent from […]

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Subprime Auto Defaults Grow by Double Digits

Aug 31st, 2016 @ 8:55 PM by Amber Nelson

American consumers with bad credit are falling behind on their car payments at an increasingly high rate, according to Fitch Ratings, a sign that the subprime market may have peaked for the foreseeable future. In July 4.59 percent of subprime auto loan borrowers (those with credit scores of 600 or lower) were 60 days or […]

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Credit Card Use is on the Rise, But Not among Millennials

Aug 17th, 2016 @ 8:37 PM by Amber Nelson

Americans are charging more purchases to their credit cards, according to new data from the Federal Reserve, but that trend does not include the nation’s youngest generation of spenders – Millennials. The Federal Reserve Bank of New York reported Tuesday that household debt rose $35 billion, or 0.3 percent, in the second quarter of 2016, […]

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Auto Loan Industry Continues to Boom but Not Without Risks

Jul 20th, 2016 @ 8:10 PM by Amber Nelson

The U.S. auto lending industry has been busy this year. Car loans and leases grew to a total value of $1 trillion a few months ago, with large lenders like JP Morgan Chase and Wells Fargo seeing almost double-digit growth in volume since 2015. And yet this stellar rise carries a lot of risk of […]

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Consumers Push Mortgage, Credit Card Delinquencies Lower

Jul 7th, 2016 @ 8:21 PM by Amber Nelson

U.S. consumers continued to manage their debts better in the first quarter, according to the latest report from the American Bankers Association, with delinquencies falling in seven of the 11 tracked loan categories. “More people have jobs, wages are higher, home values have increased and consumers didn’t overextend themselves during the holiday season,” said James […]

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