Sub-Prime Financing: A Great Way to Improve Consumer’s Credit

By Amir Dabiri - March 30, 2015

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.

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