One thing that can damage a person’s credit score is not being current on bills, which would include payments on auto loans.
However, a recent report from TransUnion shows that the 60-day delinquency rate for auto loans remained steady from the third and fourth quarters of 2009 at 0.81 percent. On a year-over-year basis, the rate of delinquency on auto loans dropped 5.81 percent in the final quarter of the year.
"Going against traditional seasonal patterns, the flattening of auto delinquency rates in the fourth quarter may be an optimistic sign for payment behavior over the remainder of this year," said Peter Turek, automotive vice president in TransUnion’s financial services business unit.
The two states with the highest rates of auto loan delinquency were Mississippi and Alabama, at 1.45 and 1.39 percent, respectively. The states with the lowest rates were Alaska (0.29 percent), North Dakota (0.32 percent) and South Dakota (0.41 percent).
Though auto loan delinquency rates remained level, the firm reported in February that mortgage loan delinquencies increased to 6.89 percent during the fourth quarter of last year. That marked the 12th quarter in a row that home loan delinquencies went up.
Loans News: This article was published
on March 3, 2010 at 12:58 pm.
