Data released by credit agencies Standard & Poor and Experian indicates that consumers are striving to improve their bad credit history by making debt payments on time and thereby reducing their total obligations.
Default rates on first and second mortgages dropped in December relative to the previous month, as did defaults on bank cards, according to LoanSafe. Auto loans enjoyed the greatest decline in default rates last month, dropping to 1.68 percent from November's 1.76 percent.
Decreasing auto loan default rates may make lenders more willing to extend credit to consumers with bad credit history. If lenders perceive that they face less risk by extending credit, car loan rates may also drop, giving a driver in the market for a new or used car an attractive choice of car financing options.
Those who would like to purchase a vehicle during these advantageous credit market conditions may want to use a car calculator to determine what kind of payments they can afford, then fill out an auto loan application to get pre-approved for an online car loan.