Deal Pack Blog
Sub-Prime Financing: A Great Way to Improve Consumer’s Credit
It’s been reported that Equifax, Inc recently reviewed two groups of consumers with Equifax Risk Scores below 550. Equifax found that over a three year period, consumers who originated a sub-prime auto loan showed a significant increase in their credit scores than those consumers that did not obtain a loan. Credit scores improved by a median of 52 points, which is a 62.5 percent improvement over the median score change of the group without loans. Those who secured a sub-prime auto loan were four times more likely than those who did not to improve their score to level above 640, in thus moving them out of the sub-prime segment.