The American credit cycle appears to finally be turning around after four years of declines. Equifax, one of the three major credit reporting bureaus, recently released its June 2011 Credit Trend Report, which shows that available new credit in April 2011 was roughly $240 billion, 15 percent higher than in April 2010. The bureau's report indicates that the credit cycle may finally be beginning to find some stability, even though the available new credit is nowhere near the $400 billion levels seen in 2006 and 2007.
Overall auto loans were up 17 percent year-to-date and 9 percent from March to April of this year. The used car loan portfolio saw a modest improvement of 4.2 percent, according to the Credit Union Times.
"Looking forward, given the uncertainties in vehicle supply [and the] Japan supply chain effect, energy costs and, most importantly, employment recovery, our forecast for new vehicle sales remains muted as consumers defer major purchases," CUNA Mutual's chief economist Dave Colby told the news source.
However, with more available new credit, many drivers might consider applying for car loans to buy new or used vehicles.