More consumers who have credit scores less than 670 are getting approved for car loans now, according to recent data from CNW Research. In October, only 6.52 percent of consumers whose credit scores are at this level were approved for an auto loan.
Now, as of February, 10.63 percent of buyers with 670 and less credit scores were approved for car loans, SubPrime Auto Finance News reports. In January 2008, the percentage was 12.07.
"Some of this can be put at the feet of financial institutions willing to ease back on credit requirements and an equal amount can be attributed to those people with marginal FICO scores coming back to the market," says Art Spinella of CNW Research.
The average FICO score has dropped from 759.49 in October to 723.69 as of February, according to CNW’s latest data.
If your credit score falls into this 670 and less range and you need a car, chances are that you’ll get approved for the car loan. You should still shop around to see which lender will give you the best rates.