Tag: subprime

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Nonprime and subprime auto lending increases while del...

Findings from Experian's latest State of the Automotive Finance Market analysis showed market share for nonprime, subprime and deep subprime automotive loans for new vehicles grew by 13.6 percent and new vehicle leasing increased by 7.53 percent year over year in Q3 2012. Thirty-day delinquencies fell slightly from 2.78...

Read More Nonprime and subprime auto lending increases while delinquencies continue to decline
Bankcard utilization rates declining, but still high f...

Not surprisingly, bankcard utilization is the highest among subprime consumers with VantageScore D and F tiers having average bankcard utilization rates of 68% and 81% respectively. In comparison, VantageScore A tier (super prime) consumers had an average bankcard utilization rate of 6% and VantageScore B tier (prime) consumers had...

Read More Bankcard utilization rates declining, but still high for subprime
One in four auto loans are now nonprime or subprime...

Loans to customers in the nonprime, subprime and deep-subprime credit risk tiers accounted for more than one in four new vehicle loans in Q2 2012. With 25.41 percent of all new vehicle loans opened by customers in the nonprime, subprime and deep-subprime credit risk tiers, loans for this group...

Read More One in four auto loans are now nonprime or subprime
A percentage of subprime borrowers are actually prime ...

Some borrowers who are deemed subprime by traditional credit scoring criteria are actually quite creditworthy and are identified as prime or near-prime consumers when using the more inclusive VantageScore┬«. Based on a VantageScore Solutions’ study of infrequent users of credit, 15.5 percent were found to have either prime or...

Read More A percentage of subprime borrowers are actually prime or near-prime
The FDIC’s definition for assessing subprime is ...

The FDIC has proposed a new rule that will change the way large lenders define and calculate risk for their FDIC Deposit Insurance Assessment. The revised definitions in the proposed rule rely on “probability of default” and eliminate all references to the traditional three-digit credit score used to calculate...

Read More The FDIC’s definition for assessing subprime is changing
Automotive loan originations shift into high gear...

Lenders continued to increase their appetite for risk in Q2 2011, with new vehicle loans for customers with credit outside of prime increasing by 22.4 percent compared with the previous year. In Q2 2011, 22.29 percent of all new vehicle loans went to customers in the nonprime, subprime and...

Read More Automotive loan originations shift into high gear
Auto loan originations increase significantly for some...

Lenders are increasing loans to credit-challenged customers. According to Experian’s quarterly automotive credit analysis, 21.87 percent of all new vehicle loans went to customers in the nonprime, subprime and deep-subprime categories. The largest percentage increases were in the two highest-risk segments: deep subprime, which jumped 17.3 percent, and subprime,...

Read More Auto loan originations increase significantly for some credit tiers