An inside look at 2 new credit scoring models

Ever since the concept of loaning money was conceived, lenders have been trying to find the ideal way to predict who will pay them back and who will default. Over time, methods for evaluating the likelihood of borrower repayment progressed from individual human judgment calls to more objective credit bureaus and reports. In the 1950s, […]
  • Mark Baltuska
  • July 18, 2019
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Forum Credit Union’s Ben Wire on Lending’s Competitive Landscape

Credit unions have been increasing their share of the auto loan business. The financial organizations controlled 21.3% of the market at midyear 2018, compared with 20.3% at midyear 2017, according to Experian. But, like other lending institutions, past performance is no guarantee of continued success. Ben Wire, Forum Credit Union’s dealer division manager, recently spoke […]
  • Auto Finance News
  • January 7, 2019
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Lenders Will Require Larger Down Payments as Underwriting Tightens

Dealers and lenders have a lot of tricks at their disposal to keep monthly rates affordable for consumers. If the monthly bill is too high, just extend the term. If it’s still too high, perhaps the consumer would consider a certified pre-owned vehicle off-lease. If a new car is non-negotiable, there’s leasing. Or perhaps the […]
  • William Hoffman
  • April 6, 2018
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Consumers Show Increased Appetite for ‘Cheap Finance,’ Report Finds

Since the downturn, the combination of attractive lease deals, pent-up consumer demand, and easy credit availability have pushed sales higher, according to an industry report by White Clarke Group released last week. Light-vehicle sales in the U.S. have delivered seven consecutive annual gains since the financial crash — marking the longest upwards streak in decades. […]
  • Natalie Mattila
  • October 10, 2017
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How Warm Is Your Welcome?

The most successful auto servicers know the welcome call is more than just a formality to perform when a new account comes on board. It is the first opportunity to delight and engage borrowers with your brand, capture and share information, and promote the services you provide. For a typical borrower, it is the start […]
  • Sagent Lending Technologies
  • July 31, 2017
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Negative Equity Trade-Ins Spike to Record High, Where Do Lenders Draw the Line?

Spurred by extending loan terms, a record-number of consumers — 31% — turned in cars with negative equity in 2016, in order to get their next vehicle, according to data from Edmunds.com. This trend, and longer-term loans, are not expected to reverse anytime soon, Greg McBride, chief analyst at Bankrate.com, told AFN — until the […]
  • Natalie Mattila
  • March 2, 2017
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CREDIT: Increase in Loans, Increase in Subprime

More consumers have chosen to finance their vehicles, while lenders have dug deeper into subprime space, experts suggest. Subprime Overall, 75.6 million consumers had an auto loan in the fourth quarter 2015, according to TransUnion. The number is up 7.8% year over year – the largest YoY increase since the agency began tracking the data. […]
  • Diana Asatryan
  • February 23, 2016
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Tools for Helping Consumers with Their Credit Scores

A borrower’s deal often boils down to her credit score. This matters because lender marketing often hinges on that score, too. There’s an opportunity for auto lenders to be a more valuable resource to consumers who are seeking to better understand their credit scores and borrowing potential, even though few lenders think about credit score services […]
  • JJ Hornblass
  • July 30, 2014
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