Late Auto Loan Payments

Looking for a Credit Card for Christmas Shopping? Before you submit a credit card application, first review the main points which will help you choose the right credit card for your needs.

What Charges You'll Make - If you're going to use the credit card mainly for booking airline reservations and hotels, it might be best for you to get a travel credit card that offers sky miles and hotel points or cashback. If this will be an emergency credit card only, then your main concern may be for a low interest rate credit card with low fees.

When You'll Repay Charges - Will you pay off credit card charges in full every month, or will you carry a balance month to month? If you're going to carry a balance, you want the lowest possible interest rate as well as a low introductory rate. But if you'll payoff balances in full every month, then interest rate really doesn't matter so no annual fee and/or a long grace period would be a bigger concern. If you're going to carry a balance, be concerned about how the finance charge is calculated. The most common method is the Average Daily Balance, which means that the daily balances are added together and then divided by the number of days in the billing cycle. Stay away from credit cards that compute the balance using two billing cycles, as this method costs more money in financing fees.

What Amount You'll Charge - If you're going to use the credit card for all your monthly expenses, then you need a card that has a high credit limit and a high cashback percentage.

More info about Interest Rates, Credit Limits, Incentives, Fees and Penalties

Interest Rates - The interest rate (Annual Percentage Rate) APR can either be a fixed rate or a variable rate that is tied to another financial indicator, most commonly the prime rate. With a fixed rate credit card you know what the interest rate will be every month, whereas a card with a variable rate can fluctuate. Of course, even the interest of a fixed rate card can change based on certain events, such as paying your credit card bill late, exceeding your limit, or simply because the credit card issuer decides to change it after providing you ample advance notice.

Credit Limit - This is the amount of money the credit card company will let you charge to the card. This amount varies depending upon the card offer and your credit history. Be sure to get a credit card with an ample limit, because getting close to your max can hurt your credit score. Just remember that you don't have to max out your limit just because it's available.

Incentives - To compete for and to gain customers, many credit card companies offer rewards. Even if you normally use cash, why not use your credit card and then use the cash to make the payment during the grace period? You still won't pay interest and meanwhile you'll rack-up rewards. A credit card with 5% cashback will earn you $5 for every $100 charged. If your total bills come to $2,000 per month, you'll earn a free $100 every month. Look for a rewards program that you'll use and which offers flexibility, such as cashback or travel.

Fees and Penalties - Compare common charges such as late fees, overlimit fees, balance transfers, cash advances, and for making payments by telephone. Regarding balance transfers, look for credit card offers with no transaction fees and zero percent interest for at least 12 months.

Affiliate Program

» Articles » News » Late Auto Loan Payments

Credit Federal

Personal loan and credit card resource serving millions of good and bad credit U.S. consumers.

View all news by Credit Federal...

Late Auto Loan Payments

By Credit Federal | Published 09/10/2009

Do you have late auto loan payments? Take action before your car payments fall too far behind. Get your household budget under control or perhaps get an auto refinancing loan for lower monthly payments.

Compare free debt relief quotes - click here

Apply for auto loan refinancing - click here

Experian Automotive reports that there is about a 21% rise in auto loans that are 60 days past due from the second quarter of 2008 until the second quarter of 2009. There was a rise in the 30 day delinquencies which topped out at about 14% in the second quarter. The combined 30 day and 60 day delinquencies are around $25 billion dollars in at-risk loans.

These economic times are still affecting the auto loan industry. The more the recession lags along, the more delinquencies rose. This in turn causes lenders to limit credit and pushes more consumers out of the auto loan market who are seeking new autos. Reports indicate more consumers are leaning more toward used autos. Financing used autos did rise by about five percent since the first of 2008.

The average length of loans for new autos went from about 63 months in 2008 to 62 months in 2009. This indicates positive market conditions. Average loan amounts vary from about $24,160 dollars in 2008 to $24,265 dollars in 2009. Regardless of loan increase, loan payments were lower the first part of 2009 than in the first part of 2008.

For consumers to finance more for new autos 2009 than in 2008, may be an indication of consumer confidence. If consumers finance larger amounts, this is good for the auto industry. Of all those loans, the top 20 lenders represent about 42% of them. Nebraska, Michigan, and Alaska experienced a reduction in delinquencies 30 days late. Montana, Idaho, Hawaii, Utah, and Washington had large percentages of 30 day delinquencies. Still, it can be a good sign for the auto industry if new auto loans increase in the third quarter.

Other resources regarding late payments:
Auto Loan Late Payments
Auto Financing Brochure
Remove Late Payments from Credit Report
Late Payments Increase Bills
Late Vs Never Credit Card Payment

Share this Financial Article with a Friend - click here

Webmasters: Free Financial Content for Your Website!

Multiple ways to use our financial content:

1) You can use our RSS Feeds for automatic insertion and updates

2) You can simply link to this article

3) You can copy/paste the HTML code below (do not remove any links).

Late Auto Loan Payments - by <a href=http://creditfederal.com>CreditFederal.com</a> Do you have late auto loan payments? Take action before your car payments fall too far behind. Get your household budget under control or perhaps get an auto refinancing loan for lower monthly payments. <a target='_top' style="font-weight: bold; font-family: Verdana;" href="http://creditfederal.com/debt-counseling.html">Compare free debt relief quotes - click here</a> <a target='_top' style="font-weight: bold; font-family: Verdana;" href="http://creditfederal.com/auto-refinance-loan.html">Apply for auto loan refinancing - click here</a> Experian Automotive reports that there is about a 21% rise in auto loans that are 60 days past due from the second quarter of 2008 until the second quarter of 2009. There was a rise in the 30 day delinquencies which topped out at about 14% in the second quarter. The combined 30 day and 60 day delinquencies are around $25 billion dollars in at-risk loans. These economic times are still affecting the auto loan industry. The more the recession lags along, the more delinquencies rose. This in turn causes lenders to limit credit and pushes more consumers out of the auto loan market who are seeking new autos. Reports indicate more consumers are leaning more toward used autos. Financing used autos did rise by about five percent since the first of 2008. The average length of loans for new autos went from about 63 months in 2008 to 62 months in 2009. This indicates positive market conditions. Average loan amounts vary from about $24,160 dollars in 2008 to $24,265 dollars in 2009. Regardless of loan increase, loan payments were lower the first part of 2009 than in the first part of 2008. For consumers to finance more for new autos 2009 than in 2008, may be an indication of consumer confidence. If consumers finance larger amounts, this is good for the auto industry. Of all those loans, the top 20 lenders represent about 42% of them. Nebraska, Michigan, and Alaska experienced a reduction in delinquencies 30 days late. Montana, Idaho, Hawaii, Utah, and Washington had large percentages of 30 day delinquencies. Still, it can be a good sign for the auto industry if new auto loans increase in the third quarter. Other resources regarding late payments: <a target='_top' style="font-family: Verdana;" href="http://creditfederal.com/article/blogs/349/Auto-Loan-Late-Payments">Auto Loan Late Payments</a> <a target='_top' style="font-family: Verdana;" href="http://creditfederal.com/article/blogs/64/Auto-Financing-Brochure">Auto Financing Brochure</a> <a target='_top' style="font-family: Verdana;" href="http://creditfederal.com/article/articles/686/1/Remove-Late-Payments-from-Credit-Report">Remove Late Payments from Credit Report</a> <a target='_top' style="font-family: Verdana;" href="http://creditfederal.com/article/articles/426/1/Late-Payments-Increase-Bills">Late Payments Increase Bills</a> <a target='_top' style="font-family: Verdana;" href="http://creditfederal.com/article/articles/425/1/Late-Vs-Never-Credit-Card-Payment">Late Vs Never Credit Card Payment</a> This article provided courtesy of <a href=http://creditfederal.com target=_new>www.CreditFederal.com</a>, a personal credit resource of good or bad credit credit cards and loans.

Credit Tip: Need a high limit for Christmas credit card charges? If you have bad credit, consider a personal loan by refinancing your mortgage. Even if you have cash to buy Christmas presents, we recommend using a prepaid card to make purchases because it's safer than carrying cash.