Auto Loan Delinquencies Expected to Rise 7%

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The rate of auto loan delinquencies in the U.S. will grow by 7% in 2010, according to TransUnion, one of the country’s largest credit rating agencies.

Driven by an unemployment rate of roughly 10%, the rise in the delinquency rate will mark the fifth straight year the rate has risen or stayed the same. Chicago-based TransUnion considers an auto loan delinquent if the borrower is more than 60 days past due on a payment.

The national average is 0.81%, which is relatively low compared with delinquencies on credit cards and mortgages, which stand at 1.10% and 6.25%, respectively.

The biggest hits in auto loan delinquencies will likely be found in the Midwest and Southeast. California is the only state expected to show an improvement in its auto delinquency rate.

TransUnion: Auto Loan Delinquencies to Grow 7% (Detroit Free Press)