Tag Archives: recession

How High Should Your Credit Score Be for a Car Loan?

Do you know your Credit Score? Even for those who are able to answer that question without looking it up have another problem. We hear all the time about ‘good’ credit and ‘bad’ credit scores but it’s never mentioned what credit score is needed to get yourself a car loan.

A major issue with determining what is the ideal score for obtaining something like a car loan is that the factors differ depending on where you go looking. Credit.com quotes a chief operating officer at Prestige Financial, “There is not a minimum score I could say. There are many lenders, many different opportunities, and there are many factors that go into an auto loan other than your credit score.”

What is these other factors that he mentioned? Besides credit score, it is also debt-to-income ration, employment history, and how well an individual has paid their loan in the past. In the case of an auto loan, have you had one in the past and if so, how on time were your payments?

Buyers with low credit scores have been in luck in the most recent years. The lending restrictions has eased up since the recession. The average score for a new car buyer in the last quarter of 2015 was 711. The same time frame in 2014, the credit score was 712. The average has been steadily decreasing since it hit a peak in 2009, right after the recession hit.

The average credit score for a used car buyer is following the same decline. Its peak during the recession was at a number of 659 and has dropped to 649 since then.

That still doesn’t do a good job of answering the question: What should your credit score be? Using the average listed for both new and used is a good metric. If you’re a ways away from the average, then it is time to start working on getting your credit score turned around. It’s worth the effort to get it fixed so you can open up opportunities for a better deal on a car loan.

If you have bad credit or low credit and need to get a new or used vehicle, be sure to contact us at Approved Loan Store. Get started today by filling out our secure online auto loan application here, and for more auto news and buying tips, like Approved Loan Store on Facebook, follow Approved Loan Store on Twitter, and subscribe to Approved Loan Store on YouTube!

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Auto Sales in 2015 Hit Record High as Auto Loans Become Easier to Obtain

When the recession hit, the auto world was one of the industries hit the hardest. The market it had relied on was no longer spending money and they in turn were about to go belly up. With a controversial loan, the industry was able to keep going to 2015, where it manage to set a record sales year. 2015 may be the year where it finally shows the auto industry is back.

For years, people avoided buying a new or used car. They simply couldn’t afford it with due to elements of the recession. For many, it was also because lenders had cut off access to subprime loans. Those with bad credit or low credit were unable to find car loans even when they needed it. As the years went on and the auto industry slowly recovered, that policy of being harder on offering loans started to go away and the lenders were being more open to loaning.

The employment rate is at the highest it has been in years and gas is at the lowest it has been since the recession first hit. It’s no wonder that people are finally getting out to purchasing vehicle. For some, it had finally hit the breaking point. They had been holding off and hoping that the current vehicle they owned would last through the hard time. Many drivers were avoiding trading in a used vehicle being unable to afford it. They sat on their current vehicle for longer than recommended and are now at a point where they simply need to get a new or used vehicle.

If you’re one of those drivers, who has held out for as long as they could or if you have bad credit or low credit and need to get a new or used vehicle, be sure to contact us at Approved Loan Store. Get started today by filling out our secure online auto loan application here, and for more auto news and buying tips, like Approved Loan Store on Facebook, follow Approved Loan Store on Twitter, and subscribe to Approved Loan Store on YouTube!

Auto Loan Amounts Hit Post-Recession Peaks

According to a new report from Equifax, consumers looking to get an auto loan could be getting a lot more than they expected.

Back in August, Equifax recorded that auto loan originations year-to-date through August 2012 came out to more than $283 billion. The last time it was that high over an eight-month period was back in 2006 at $297.5 billion or the equivalent of 14.6 million new and used vehicles. Loan amounts have also gone up with loans averaging $19,492 back in August, once again having comparable numbers to average loan amounts in 2006.

Equifax’s Chief Economist Amy Crews-Cutts claims that auto loans recovered quicker than other types of loans because the public’s demand has not waned. It makes sense because while people can put off certain purchases like a house, a car is a necessity in most parts of the country. Americans will still go for an auto loan because they need to get to around, to drive to work or pick up their kids from school. When consumers couldn’t get the loan amount they wanted, they made do with what they got. Now that loan amounts are at pre-recession levels, consumers can afford to get a car that they both need and want.

Have you been waiting for the right time to get into that new or used car? The time is now! Whether if you have good credit, bad credit, or no credit, Approved Loan Store wants to help you get into the car you want at terms you can afford. Fill out our secure online auto loan application here, and be sure to like Approved Loan Store on Facebook, follow Approved Loan Store on Twitter, and subscribe to Approved Loan Store on YouTube!

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Study: Drivers Waiting Longer Between Buying New Cars

A new study from Polk, one of the foremost automotive data and marketing firms, shows that your next car purchase could be more important than you might think.

The recession has changed driver’s attitudes and buying habits, and drivers are now sticking with their cars for much longer than they used to. Dealerships used to expect drivers to buy a new car or truck every three to four years, but that number has doubled to six to eight years.

Why the change? Well, cars are built to last longer. Drivers don’t have to replace their car as often. Unfortunately, that is not the only reason. The recession has left many consumers wary of major purchases like a new car, and if they can delay that purchase for a few years, they are more likely to put it off. To make matters worse, surveys have shown that American consumers hate negotiating auto pricing and financing. No wonder drivers are delaying that trade-in.

The only way that the auto industry can change this trend is by offering more affordable car buying options, streamlining the car buying process, and working to make the car buying process pleasant and simple. At Approved Loan Store, that is exactly what we are doing. We give our customers a better car buying experience. Whether they have good credit, bad credit, or no credit, we work tirelessly to get them into a car that they want at terms they can afford.

Are you ready to try a different car buying experience? Fill out our secure online auto loan application here, and get the latest news and car buying tips by liking Approved Loan Store on Facebook, following Approved Loan Store on Twitter, and subscribing to Approved Loan Store on YouTube!

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Americans Getting Into Cars, Back to Work

In the past, we have written about the strong correlation between car ownership and the unemployment rate. When more people have cars, unemployment is usually down because more job opportunities are open to them. A job hunter who owns a car is not limited to places along public transit routes, and once they get the job, they can be more reliable than an employee who hopes the bus is running on time.

The latest jobs report, which was released this week, showed that this correlation still holds true. Unemployment has dropped to 7.8 percent while car sales have continued to go up throughout 2012.

Now, some people will say that this correlation doesn’t suggest that car ownership leads to better job security and will take the other side of this “chicken-or-the-egg” debate. They will claim that because more people are employed, more people have the money to spend on a new car, and they would be partly right. Yes, some car buyers are just looking to upgrade their ride or buy a car that is more luxury than necessity, but take a minute and look at the auto sales numbers for 2012. There are not that many people buying a car just for fun. The economy is better, but it is not that good.

Coming out of this recession, Americans are valuing car ownership. Millions of people have been out of work, and they know the frustration of riding the bus or relying on a friend to drive them to yet another job interview. With Americans going back to work and auto loans accessible to more consumers, even those with subprime credit, it makes sense that people are strengthening their job security by getting a car now.

Are you ready to get into a new or used car today? Approved Loan Store can help you! Good credit, bad credit, no credit, we want to get you in the car you want at terms you can afford! Fill out our secure online auto loan application here, and be sure to like Approved Loan Store on Facebook, follow Approved Loan Store on Twitter, and subscribe to Approved Loan Store on YouTube!

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No Credit No Longer Problem For Lending

If you’re one of the many people that suffers from having some bad marks on your credit report, well, there’s a silver lining in the clouds for you. Just a few years ago with the economy in the state it was in, having bad credit and attempting to get a credit card was a fool’s errand. That seems to have turned around lately, however.

An article from Fox Business quotes a new report from the Equifax credit bureau. According to the report, lenders are starting to look to the sub-prime borrowers to help spur the economy. The number of credit that was given in the previous year to consumers grew more than 10% to $782 billion. This includes everything from credit cards to mortgages and especially auto loans.

This is a huge shift from where things were when the recession was at its peak. Banks avoided lending to the sub prime market. They made it so that the only people getting the loans were only the most credit-worthy. Amy Crews Cutts, the senior VP and chief economist for Equifax, commented, “Banks want to lend because that’s where they make money.”

It’s a great time to be in the market for a car, no matter what your credit situation is. The market is looking to help lend to these people, auto loans included. Approved Loan Store loves bad credit and wants to work with you to help you find the car you need. Go online to fill out the auto loan application and see how we can help you. Make sure to check out and like our Facebook page to see the latest news in the industry. Also, follow us on Twitter, and watch our customer testimonials on YouTube.

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Auto Advertising Changes For New Trend of Buyers

Car buyers have been struggling along with the auto industry and now are both seeing an upturn in their situation with the economy finally recovering. With more money in their pocket, they are wanting to get back in the seat. The problem the industry is facing, however, is how to advertise to the interested party.

According to a report by the Foresight Research, buyers have begun to turn away from advertising that makes the car out to be “sporty” or “fun to drive.” People are looking to get quality out of their vehicle, they care more about seeing a vehicle as “competitive” and in “discounts.”

The constant rising of gas prices has also given rise to the consumer who wants to make sure that their car has good fuel economy. The report also notes that brand recognition still plays a large role in what people purchase. Due to that, it’s not really surprising that the strong sales in February were in part to the fuel efficient cars such as the Honda Civic and Ford Focus.

Go online to Approved Loan Store and apply to get driving away in the car you want, be it practical for the family or for a sporty fun ride. Be sure to check out and like our Facebook page to see all the latest on news and testimonials from our satisfied customers.

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