Smart Borrower Blog

Archive for the ‘Auto Loans’ Category

Texans Carry Most Auto Loan Debt

Sep 18th, 2019 @ 10:23 AM by Amber Nelson

Everything is bigger in Texas, including car loan debt, apparently. According to a recent study from credit bureau Experian, out of the top 25 U.S. cities with the highest average auto loan debt in the second quarter, 24 of them were in Texas. Midland, Texas ranked number one, with residents owing an average of $33,847 […]

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Majority of Millennials Have Faced Credit Rejection

Aug 29th, 2019 @ 9:23 AM by Amber Nelson

Millennials are reporting higher rates of rejection for loans than older generations, according to a study by YouGov for Bankrate.com. The study that polled 2,500 Americans found that roughly 6 out of 10 millennials (aged 23 to 38) say they have experienced a rejected application for car loans, credit cards, or mortgage loans. Most of […]

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Q2 Auto Loan Debt Hits Record $1.3 Trillion

Aug 21st, 2019 @ 2:39 PM by Amber Nelson

Americans now owe $1.3 trillion in auto loan debt, according to data from the Federal Reserve, a record high and a 4.8% increase from one year ago. The Fed’s Quarterly Report on Household Debt and Credit found that during the 2019 second quarter, new auto loans and leases increased by 2.9% for a total of […]

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Fed Makes First Rate Cut in a Decade

Jul 31st, 2019 @ 9:17 PM by Amber Nelson

The Federal Reserve voted today to lower its target interest rate by 25 basis point to a range of 2% to 2.25%, the first rate cut in 11 years. The Fed’s Federal Open Market Committee (FOMC) found that “the [U.S.] labor market remains strong and that economic activity has been rising at a moderate rate,” […]

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Only Half of Borrowers Make Regular Student Loan Payments

Jul 24th, 2019 @ 9:44 PM by Amber Nelson

Only 54% of all U.S. borrowers with student loan debt make consistent monthly payments, according to a study from the JPMorgan Chase Institute, with the rest falling delinquent or making larger, less-frequent payments. Student loan debt has skyrocketed over the past 10 years, with outstanding loan balances doubling in that period. The Federal Reserve Bank […]

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Prime Credit Consumers Turn to Used Vehicles

Jun 27th, 2019 @ 9:16 AM by Amber Nelson

As prices for new vehicles continue to hit record highs, U.S. consumers with great credit are choosing to buy used cars more often. According to data from credit agency Experian, during the first quarter of 2019, 61.8% of borrowers with prime credit and 44.7% of those with super prime credit scores took out loans for […]

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Auto Lenders Take on More Subprime Borrowers

May 23rd, 2019 @ 12:13 PM by Amber Nelson

While the majority of car loan borrowers continue to have high credit scores, lenders have increased their loans to subprime borrowers over the past year, according to the Federal Reserve Bank of New York. The New York Fed’s Quarterly Report on Household Debt and Credit for the 2019 first quarter found that those with credit […]

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Car Loan, Credit Card Delinquencies Reach New Peaks

Apr 24th, 2019 @ 9:22 PM by Amber Nelson

U.S. consumers are falling behind on their credit card bills and car loans at higher rates than have been seen in almost a decade, according to data from the American Bankers Association, but that may be more of a return to historical norms rather than a sign of economic doom. After falling in 2017, in […]

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Average Car Loan Interest Rates Hit 10-year High

Mar 20th, 2019 @ 10:09 AM by Amber Nelson

Americans love their big trucks and SUVs and that affection is driving average auto loan interest rates to highs not seen in a decade, according to Edmunds. As vehicle prices continue to climb, lenders have been increasing the number of low or zero interest rate programs, which has in turn pushed overall new-vehicle auto loan […]

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Household Debt Tops Pre-Recession High

Feb 20th, 2019 @ 9:58 PM by Amber Nelson

Americans owed $13.54 trillion in household debt as of the 2018 fourth quarter, according to data from the Federal Reserve Bank of New York, a 0.2% increase from the third quarter and the 18th straight quarterly gain. Total household debt has surpassed even the pre-recession peak of $12.68 trillion and is 21% higher than the […]

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