Equifax recently released its latest monthly Credit Trend Report, which shows that consumer credit is on the rise. New credit availability is up 15 percent since 2010 to roughly $167 billion, which is still significantly lower than pre-recession availability, but as the economy improves, so will credit.
The San Francisco Chronicle reports that the ratio of debt payments to income is the lowest it has been since 1994, making this a good time for people with bad credit to consider car financing. Bank lenders stated that the demand for auto loans is up for the first time since 2005, as well.
James Paulsen, the chief investment strategist for Wells Capital Management in Minneapolis, told the news source that more car loans could create more growth in the automotive industry, which would combat the slow down caused by rising gas prices.
Last month, car sales slowed to the lowest rate since June 2010, and industry experts told the Detroit Free Press that this is due to high fuel costs, as well as a decline in the number of vehicles on the road. Roughly 2.1 million more cars were scrapped than were purchased since 2008.