Smart Borrower Blog

Archive for the ‘Auto Loans’ Category

Consumer Credit Debt Grows at Fastest Pace in 12 Months

Nov 8th, 2017 @ 6:40 PM by Amber Nelson

U.S. consumer borrowing jumped up in September, according to data from the Federal Reserve, fueled by a surge in auto sales and student loans. Total consumer credit debt rose $20.8 billion in September, or at a 6.6% annualized rate to $3.79 trillion in all. That is the fastest pace since November 2016. September’s growth exceeded […]

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Federal Reserve Leaves Rates Alone Buts Plans to Sell Off Bonds

Sep 27th, 2017 @ 12:36 PM by Amber Nelson

The U.S. central bank declined to raise its target interest rate last week, but it will start selling off its massive portfolio of bonds in October. The Federal Reserve left its federal funds rate – which affects everything from mortgage rates to car loan rates to food prices – in the range of 1 percent to […]

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Deep-Subprime Auto Loan Delinquency Rates Hit Pre-Recession Levels

Sep 6th, 2017 @ 3:21 PM by Amber Nelson

Auto-loan borrowers with the worst credit are falling behind on their payments at a rate not seen in a decade, according to data from credit reporting agency Equifax. Deep-subprime borrowers, as they are called in the industry, have been defaulting on their auto loans at alarming rates. “Performance of recent deep subprime vintages is awful,” […]

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American Household Debt Reaches All-Time High

Aug 23rd, 2017 @ 1:26 PM by Amber Nelson

Americans increased their debt loads enough for a record high in the second quarter, according to a new report from the Federal Reserve Bank of New York, with credit card delinquencies rising enough to cause concern. Total U.S. household debt rose to $12.48 trillion during the months of April, May and June, an increase of […]

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Wells Fargo Faces Fraud Charges after Auto Insurance Scandal

Aug 9th, 2017 @ 8:48 PM by Amber Nelson

Wells Fargo has found itself embroiled in yet another scandal, one that could potentially lead to hundreds of millions of dollars in legal losses. The New York Times exposed an internal Wells Fargo report that reported the bank had charged more than 800,000 of its auto loan customers for insurance they did not need or want. […]

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Auto Loans Terms Lengthen as Average Affordability Drops

Jun 28th, 2017 @ 9:16 PM by Amber Nelson

The majority of Americans cannot truly afford to buy a new car, according to a new study by Bankrate.com http://www.bankrate.com/auto/new-car-affordability-survey/. The result is longer car loan terms, with some stretching as far as 8 years. “The main point of this research is to illustrate how Americans are having to overextend themselves to pay for a […]

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Student Loan Delinquencies Outpace All Others

Jun 21st, 2017 @ 9:30 PM by Amber Nelson

While auto loan and credit card delinquencies are on the rise, they are extremely low compared to the rapid increase of student loans falling into delinquency. According to the Federal Reserve Bank of New York’s latest U.S. Economy in a Snapshot, “flows into serious delinquency for all loan types except student loans peaked during the […]

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Federal Reserve Raises Rates to 9-Year High

Jun 15th, 2017 @ 8:49 PM by Amber Nelson

The Federal Reserve increased its target interest rate to a range of 1 percent to 1.25 percent Wednesday, the first time in nine years the rate has been over 1 percent. The rise could affect everything from credit card rates to mortgage loans to savings rates. As promised, the Fed raised rates for the second […]

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Subprime Auto Default Could Lead to Other Defaults

Apr 19th, 2017 @ 8:57 PM by Amber Nelson

Roughly 17 percent of U.S. consumers believe they will default on an auto loan payment over the next 12 months, fueling concerns that defaults on subprime auto loans are affecting more of the economy than predicted. According to a new survey from the UBS Evidence Lab, only about 16 percent of all current car loans […]

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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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