Financial institutions are beginning to recover from the recession, and some of the people who stand to benefit the most are potential borrowers. Lenders are becoming increasingly likely to approve loans from subprime applicants, The New York Times reports, which could be good news for anybody looking to get behind the wheel of a used car.<\/p>\n
To get an idea of how much the climate is improving for people with poor credit standing, you need look no further than how many credit cards were issued toward the end of 2011. In December, lenders gave out 1.1 million new cards to people who had damaged credit, which was up 12.3 percent from November. Furthermore, those borrowers accounted for 23 percent of auto loans during last quarter of 2011, according to the Times.<\/p>\n
"It’s clear that we are returning to business as usual," Mark T. Williams, a former Federal Reserve bank examiner, told the newspaper.<\/p>\n
A subprime borrower is someone who has a credit score of 660 or below, and the fact that lenders are becoming more likely to approve loans for this segment is good news if borrowers are looking to rebuild their credit standing. According to Experian, paying back loans on time is one of the best ways to do so, as is keeping credit card balances low and paying bills in a timely fashion.<\/p>\n