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CUSTOMER CREDIT TURNS MORE POSITIVE
Recent Turndowns and Approvals Rate Show Possible Economic Trend
Credit worthiness means everything in car leasing, and Swapalease.com might have evidence of improving U.S. credit for consumers. Since the end of May, U.S. Bank customer approvals for taking over a car on Swapalease.com climbed to an average of 73.7%, compared with 55.5% the same time last year.
Consumer credit is a key element on the Swapalease.com online lease swap marketplace. Every person interested in taking over a remaining lease contract on a vehicle in the marketplace must have equal or better credit than the current lessee. The lenders that own the lease are the ones determining if an incoming person’s credit is approved for transfer. U.S. Bank, the largest non-captive lender for leases,shows an improvement in approval rates on Swapalease.com.
“While there are still areas of the economy that aren’t running on all cylinders, the atmosphere for credit in the automotive industry is showing signs of improvement,” said Scot Hall, Executive Vice President of Swapalease.com. “Auto loan delinquency rates are down and credit approval ratings are up, a significant trend that shows a healthier consumer compared with a few years ago.”
All three credit-reporting agencies have stated that credit delinquencies have declined for automotive payments. Most recently, Equifax reported that the rate of July auto loan delinquencies 60 days or longer dropped 35% compared with last year.
On Swapalease.com, 24% of U.S. Bank-led lease transfers were declined in July compared with 50% declined during the same time last year. That trend has been consistent over the last four years, with 52.6% being declined in 2010, and 55.6% declined in 2009.