Small business loans – a new lending landscape

Posted on Jun 03 2013 by

Financial institutions are revisiting their policies and thresholds for lending to small businesses and are slowly loosening restrictions. In a recent survey by the Federal Reserve Board, 9.2 percent of senior loan officers said they have “somewhat” eased their standards for lending to small firms and provided commercial borrowers more leeway, in the form of slightly bigger credit lines and longer maturity terms.

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Mortgage originations continue to increase

Posted on May 26 2013 by

Providing more evidence of a housing recovery, Q1 2013 mortgage originations increased 16 percent year over year to $471 billion. The Midwest region delivered the strongest annual gain, with a 29 percent increase over the previous year.

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Big expenditures are the most common reason for checking credit score

Posted on May 19 2013 by

A recent survey that polled Americans on credit scores found that while nearly half of respondents (49 percent) check their credit scores at least once per year, the rest check once every two years or less, including a worrisome 22 percent who never check. The most common reasons for checking a credit score include purchasing a home (31 percent) or an automobile (32 percent).

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Study analyzes profiles of consumers with high credit scores

Posted on May 12 2013 by

VantageScore Solutions’ analysts recently examined how many accounts consumers with prime credit scores typically have in their credit file. Consumers who generally qualify for loans have an average of 13 loans in their credit files, and typically the oldest loan is more than 15 years old.

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Hybrid buyers care for the environment and their credit

Posted on May 05 2013 by

A recent analysis by Experian Automotive found that, overall, consumers purchasing a hybrid have significantly higher credit scores than those purchasing another type of new vehicle. The average credit score for a loan on a new hybrid was 790, compared with the national average credit score of 755 for a loan on any new vehicle.

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Group with lowest average balance shows greatest quarterly percentage increase

Posted on Apr 28 2013 by

While VantageScore® super-prime consumers carried the lowest average credit card balance of all credit tiers in Q4 2012 ($2,581), this group experienced the greatest average balance increase (6 percent) when compared with the previous quarter. All other credit tiers had little or no change to their average credit card balance.

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Consumers are taking on longer automotive loans

Posted on Apr 21 2013 by

Findings from Experian’s latest State of the Automotive Finance Market analysis showed the average loan term for a new vehicle jumped to an all-time high of 65 months in Q4 2012, up from 63 months in Q4 2011. More consumers also are opting for leases, with the lease share of new auto financing increasing to 24.79 percent, up from 10.45 percent in Q4 2011.

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National credit default rates are in line with other economic trends

Posted on Apr 14 2013 by

The most recent release of the S&P/Experian Consumer Credit Default Indices showed national credit default rates decreased in February. The national composite* moved from 1.63 percent in January to 1.55 percent in February. First mortgage and bankcard default rates followed a similar pattern. These trends are consistent with other economic news, such as improvements in employment and continuing gains in housing.

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New model expands the scoreable universe

Posted on Apr 07 2013 by

Using a more inclusive scoring model such as the new VantageScore® 3.0, lenders can score up to 30 million consumers who are labeled “unscoreable” by traditional models. Nearly 25 percent of these consumers are prime or near-prime credit quality.

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Consumers with HELOCs have the highest average credit score

Posted on Mar 31 2013 by

While the overall average VantageScore® for consumers in Q4 2012 was 748, the average score can vary greatly by specific loan product. For example, the average VantageScore for consumers with a home equity line of credit is 864, which is the highest average score for all products, reflecting tighter lending requirements. Student loans have the lowest average VantageScore of 695.

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