Experian: It's easier to get a loan

February 24, 2012 12:00 AM

Shifting credit factors are making it easier to get approved for a car loan, according to a new report by Experian.

Experian's data for December 2011 shows that buyers had a much easier time getting an auto loan compared to the previous year, according to Reuters. The average credit score for an approved new car loan was down six points, while used car credit ratings were down nine points. A higher percentage of loans also went to subprime buyers.

Overall, lenders offered 4 percent more in loans than they did the previous December. That was partially due to the average size of the loans increaseing, according to the report.

Improved consumer trends, such as a lower rate of delinquencies and fewer loans at risk, gave lenders the confidence to offer riskier and larger loans.

"Lenders are clearly on much more solid ground than they were two or three years ago," said Melinda Zabritski, director of automotive lending at Experian.

A car loan will cover the cost of a vehicle, but drivers will be on their own for handling any car repairs to come up. One way to manage this expense is to stay on top of your auto maintenance, making sure that you take care of any issues before they turn into more expensive problems.

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