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More Than 700,000 Credit Applications Rejected in 1Q, Says CNW

April 14, 2009

Despite sales being off by nearly 40 percent from the first three months of last year, credit-application rejections increased 329 percent from the same period last year, according to CNW Research.

Looking at the first quarter, the Bandon, Ore.-based market research firm reported that 728,891 applications were rejected. For the same period last year, 221,519 applications were rejected. During the same quarter of 2006 and 2007, lenders rejected 188,613 and 103,108 applications, respectively.

CNW said applications rejected this year were also within 3 percent of the average credit ratings approved in 2006.

Additionally, the number of prime (680) loans approved dropped from 77.59 percent in March 2007 to 63.75 percent for same month this year. Near-prime loans (620-679) dropped from 55.64 percent to 49.64 percent. As for subprime applications, approvals dropped 23.47 percent to 6.78 percent.

In 2006, the high point for loan approvals in a four-year span, approvals for prime, near-prime and subprime stood at 86.47 percent, 58.83 percent and 37.44 percent, respectively.

Comments

  1. 1. Paul Machin [ April 14, 2009 @ 03:21PM ]

    We need a groundswell of activism at the dealer level to congress. Like the Wendy's slogan of old "where's the beef" Well "Where's the money" nearly 2.5 trillion given to lenders to release credit. Where is it?

  2. 2. John Clendenning [ April 15, 2009 @ 02:25PM ]

    I agree, people are buying cars... banks just aren't lending money. Give the people the money and I can promise you they will spend it. The banks obviously are not using it wisely.

  3. 3. Jeff Dodson [ April 28, 2009 @ 06:29PM ]

    We have a new program that will help dealers get their credit rejects back into the dealership when their credit score has increased and are able to buy a new car based on the lenders qualifications. Give me a call to learn more we are here to help dealers get more cars sold. Jeff Dodson 616-871-0744

 

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