TAbout the only credit a young adult can get is a ridiculously high interest rate credit card. In fact, you can probably get 20 of them if you want. I know I had $10,000 in credit at 19 years old with NO JOB. America, where credit is given to those who can't afford it.
A more standard way to start credit building for youngsters is with the purchase of a car. You are much more likely to pay this one as they can take your car away if you don't, and you only get that credit once, as it isn't revolving like credit cards you can use to buy just about anything now like booze, order Phentermine online, and play poker.
Here is an article about how to do it, and advice on how to do it right.
Showing posts with label loans. Show all posts
Showing posts with label loans. Show all posts
Saturday, May 15, 2010
Monday, October 13, 2008
Late Payments on Auto Loans Rising, Gas Prices Dropping
It's not just the home mortgages that are taking a toll in this economy. Auto loans are having their share of troubles as well. Borrowers have pushed the total of late payments up to over $25 Billion recently according to figures released by Experian Automotive, a part of Experian, at the Automotive Finance Summit by the hotels in las vegas this week.
Experian Automotive presented a comprehensive overview of automotive lending trends based on a quarterly analysis of the market from the second quarter of 2006 through the second quarter of 2008. The analysis found that loans 30 days past due were up 9 percent year-over-year in the second quarter of 2008, while loans 60 days past due were up 11 percent. Currently, 2.48 percent of all automotive loans are 30 days past due, compared with 2.28 percent in the second quarter of 2007. Automotive loans 60 days past due rose to 0.75 percent from 0.67 percent. Although it may not seem like a ton to the average person this is a significant increase over this term. Just shows that the economy is taking its toll on even more industries.
On a happier note, gas prices have dropped significantly over the last week. While we were probably paying $3.50-4.00 a gallon a week ago, many of us are seeing prices at the pump around $3 now, and I have even gotten gas for as little as $2.90 a gallon in the last few days.
Theory suggests that the decline comes as hurricane season winds down and oil prices drop because demand is likely to weaken as the economy slows. Hey...at least getting to work and back isn't going to be so costly this month. Great time to build up your cash reserve, or pay off some debt because this isn't going to be this friendly for a long time. I guess if you don't like to think a head, then you have more money to blow on stuff you want instead of using a credit card for it.
Experian Automotive presented a comprehensive overview of automotive lending trends based on a quarterly analysis of the market from the second quarter of 2006 through the second quarter of 2008. The analysis found that loans 30 days past due were up 9 percent year-over-year in the second quarter of 2008, while loans 60 days past due were up 11 percent. Currently, 2.48 percent of all automotive loans are 30 days past due, compared with 2.28 percent in the second quarter of 2007. Automotive loans 60 days past due rose to 0.75 percent from 0.67 percent. Although it may not seem like a ton to the average person this is a significant increase over this term. Just shows that the economy is taking its toll on even more industries.
On a happier note, gas prices have dropped significantly over the last week. While we were probably paying $3.50-4.00 a gallon a week ago, many of us are seeing prices at the pump around $3 now, and I have even gotten gas for as little as $2.90 a gallon in the last few days.
Theory suggests that the decline comes as hurricane season winds down and oil prices drop because demand is likely to weaken as the economy slows. Hey...at least getting to work and back isn't going to be so costly this month. Great time to build up your cash reserve, or pay off some debt because this isn't going to be this friendly for a long time. I guess if you don't like to think a head, then you have more money to blow on stuff you want instead of using a credit card for it.
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