Americans repay car loan faster

The Equifax research firm reports in a monthly report that Americans with a car loan are paying off their debts earlier than a year ago. In total, the number of Americans in arrears fell 35% from 2011.

Research: Americans more often pay off car loans on time
Research: Americans more often pay off car loans on time

Research by Equifax has shown that Americans with a car loan are paying back their debts earlier than a year ago. The number of people with a car loan who could not pay within the payment term was 35% lower in July than in 2011. Due to the adjusted credit standards, people would be able to repay their loan earlier. According to the agency, payment arrears within the mortgage sector have also decreased.

Financial institutions in America work with so-called 'credit scores' to determine the creditworthiness of the applicant for the loan. This score varies between 300 and 850 and is inherent to the economic situation in the country. In addition, the exact way in which this is calculated is not public.

In the Netherlands, the method of the Credit Registration Office ( BKR ) is used to test the creditworthiness of the applicant. Earlier this year, the National Institute for Budget Information (Nibud) reported that the number of people with payment arrears in the Netherlands has increased again.

Published September 20, 2012 at 8:33 am by the editors .

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