Creditnet News Story
Amount tied to auto delinquencies declines in 4Q
Monday, March 22, 2010
By Sam Lee
Experian Automotive said that delinquencies on vehicle loans posted slight increases when compared to 2008.
One of the things that can affect a person's credit score is if they pay their debts on time, including what they owe on car loans.
A recent report from Experian Automotive noted that some consumers may be having an easier time dealing with the amounts they owe on their vehicles. The total dollar amount for at-risk auto loans dropped 10 percent between the fourth quarters of 2008 and 2009.
Though the number of 30- and 60-day delinquencies did go up in the fourth quarter, the increases were "minimal," the firm reports. Payments that were 30-days late increased 1 percent on a year-to-year basis, while those that were 60 days late went up 3.5 percent.
"While delinquencies are still higher than the industry would like, we have not seen an alarming run-up in delinquencies like we did a year ago," said Scott Waldron, president of Experian Automotive.
A recent report from the Federal Reserve Board showed that the amount of nonrevolving credit declined at an annual rate of 1.4 percent during the fourth quarter of 2009. Part of nonrevolving credit is made up by vehicle loans.
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