Recent data released by the American Bankers Association (ABA) shows that although Americans’ loan delinquencies rose for the first time this year, they are paying off their car loans at a greater rate.
Delinquencies, which are defined as a payment more than 30 days late, rose slightly from 2.98 to 3 percent in the second quarter. However, car loans were among the types of obligations that decreased in delinquencies, falling from 1.79 to 1.67 percent.
ABA tracks loans across eight different categories, including bank cards, home and car loans.
According to the organization, the slight increase means that the economic recovery that many Americans have predicted may have hit a stumbling block.
“The economic momentum over the last few quarters seems to be losing steam,” ABA Chief Economist James Chessen said in a statement. “This will affect job creation and the ability of consumers to pay off debt. I think delinquencies will continue to improve but at a slower pace, reflecting a struggling economy.”
Drivers with bad credit are not alone, as the poor economy has affected everybody. Yet these consumers should know that they still may be pre-approved for a car loan.