Go retro for car loan approval

As lenders around the world tighten their purse strings, consumers need to look to the past for clues as to how to get credit.

Such is the claim of MSN Money’s Liz Pulliam Weston, who notes that while the current economic climate may be scary for consumers used to cheap credit cards and easy loan access, this kind of situation has been endured before.

Back in the 70s, lenders were a lot more averse to handing out credit cards and car loans – and consumers may get clues about what it will take to persuade providers to part with the cash to buy a new motor by looking back to this decade.

“Car loans were typically for two to three years, four years at the most and usually required a down payment of 20 per cent or more,” Pulliam Weston pointed out.

As such, those on the hunt for a car loan might want to try to put more cash aside before stepping on to the forecourt, in order to improve their chances of getting a deal.

Elsewhere, CNN has urged people to keep credit card debts in check as outstanding payments will look bigger if credit limits are lowered.