After taking the heat from Congress and the public as to why they aren’t loaning more money to consumers, lenders are using TARP funds to increase loan approvals, including car loans, according to the latest analysis from CNW Research.
Congress reportedly accused lenders of not using the TARP money to offer consumers more loans, reports SubPrime Auto Finance News.
According to CNW Research, the average FICO score for consumers who were approved for a used car loan fell to 673, compared with 692 in February, 2008 and 709 in June, 2008.
“For all of the concern about banks ‘hording TARP money’ and not lending enough, they have, in fact, twisted the spigot so a few more lending drips are flowing to a bit riskier customers,” said Art Spinella of CNW Research. “Loan approvals also rose.”
So if you’re in the market for a used car and need a car loan to buy it, don’t think you won’t be approved. Lower average FICO scores and increased approval rates should convince you to at least apply for the car loan. You may get approved with a great interest rate.
More buyers are getting approved recently for used car loans.