Although lenders tightened their belts during the economic recession, credit unions looking to rebound from the tough economy are easing lending restrictions, meaning more Americans are being approved for a car loan.
CNW Marketing Research reports that approval for those with the highest credit rating jumped to 90 percent in June of 2010, up from 70 percent toward the end of 2008. Those in the middle tier, or scores above 620, have an approval rate of about 82 percent, up 12 percent.
And according to the Dayton Daily News, lenders in Ohio are making car loans easier to obtain, even for those with bad credit.
At Wright-Patt Credit Union, managers decided to relax restrictions and extended offers to those with bad credit. The company increased the amount it would lend a driver and also made it easier for those with imperfect credit to get financing. That helped the credit union grow its own market share in Ohio.
In addition to easier financing, car loans are also becoming more convenient. It’s now possible, for example, to get car loan rates and apply for a loan online. Even those with bad credit can shop for a car and apply for a loan right from their living room.