Lenders Loosen Car-Loan Criteria

Wall Street Journal 
August 25, 2010
Terlep, Sharon

According to a recent study, lenders are more willing to extend new car loans to buyers with subpar credit scores. Experian Automotive reports that loans to consumers with credit ratings considered less than prime accounted for 18.2 percent of auto loans in the second quarter, compared to 17.6 percent in the same time frame of last year. The modest increase is a sign that finance companies are becoming more open to the idea of lending to consumers whose credit scores are below the 700 range. A crackdown on lending to risky borrowers during the worst of the financial crisis left many customers in 2009 without access to car financing.
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