As the economy continues its slow but steady improvement, the number of U.S. auto loan delinquencies also continues to drop. Consumers credit data firm TransUnion says that delinquencies have been on the decline for much of the last two years and analysts expect the trend to continue through much of 2012.<\/p>\n
The only thing threatening the reduction in the number of delinquencies is the growing number of loans in the first place. Experts say that loan recipients are most likely to fall behind in their payments early on, but they are confident for the continued decrease – especially in a number of states including Michigan, Rhode Island and North Carolina.<\/p>\n
"Auto loans have performed quite well since the beginning of 2010 and we expect delinquencies to remain relatively low throughout 2012 as the gradual recovery in the economy will benefit both lenders and consumers," said Peter Turek, automotive vice president in TransUnion's financial services business unit.<\/p>\n
Anybody considering applying for an auto loan may want to take a few steps ahead of time to make sure that they don't contribute to a rise in the delinquency rate. First and foremost, you should honestly assess your financial situation to know what you can afford. Additionally, you should make sure to get a copy of your credit report before you apply so you can address any discrepancies.<\/p>\n