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- Should I update my income in my credit card account? (7 23 24)
Should I update my income in my credit card account? (7 23 24)
Anthony Hazzard
July 23, 2024
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Auto lenders have tightened their standards. Find out why later in this email.
💵 Today’s Top Stories
 | You log into your credit card account and the company asks you to update your income. Should you do it? And what changes based on your answer? Read more. |
 | Travel is in full force. Want to make the most out of your next trip? Don’t waste time with a bad rental car experience. See which companies satisfy their customers. Read more. |
 | Getting your eyes checked regularly is important. But it can also be really expensive. Our Team Clark expert compares prices to help you save money on your exams. Read more. |
 | Hiring the wrong contractor can be devastating, but some home projects just aren’t DIY. Here’s our six-step guide to hiring your next contractor. Read more. |
 | The CrowdStrike outage has impacted millions of flyers over the last several days. Was your flight canceled or delayed? Here’s what you need to know! Read more. |
🚗 Why Auto Lenders Have Tightened Their Standards
Auto lenders are originating meaningfully fewer loans now than pre-COVID-19.
To be specific, lenders generated 23% fewer loans in Q1 of this year vs. Q3 of 2019.
Why? Loan interest rates are way up compared to then, as are vehicle costs. People also have agreed to longer loan terms on average.
Lenders also have become stricter. And negative equity is a big reason why.
The Manheim Index was down nearly 9% year-over-year as of June – a big indicator that used car prices continue to fall. New-car inventory grew dire during the COVID-19 disruptions. But as supply normalizes, or even becomes excessive for certain models, the trickle-down effect has undercut used car prices.
Three-year-old used cars fell 1.5% in June vs. an average of 0.5% from 2014 to 2019.
New car buyers who purchased during peak pandemic prices have seen their vehicles depreciate in value much faster than normal. Many, especially those with long loan terms, are “underwater” on their loans. In other words, they owe more than their vehicles are worth.
The share of trade-ins with negative equity reached 24% in Q2 of this year with an average negative equity of more than $6,200.
Repossessions are twice as likely for vehicles with negative equity. It also becomes more difficult to get approved for a new loan if you’re upside-down on your trade-in.
A big way to prevent going upside down? Never agree to an auto loan of more than 42 months.
📊 Stat of the Day
🇺🇸 10,000+: The number of crystals in the Luminous Legacy leotard. It’s one of eight options the U.S. gymnasts can wear during the Paris Olympics, which officially begin tomorrow. The red, white and blue leotard with a V-neck and corset design would sell for about $5,000 based on the value of the crystals.
💰️ Deal Alert: Today’s Top Deals
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🎙️ Podcast
Clark is a member of both Costco and Sam’s Club. Both warehouse clubs recently announced big news for shoppers: Costco is raising membership prices and Sam’s Club is removing free shipping for Plus members. Will Clark let his memberships expire? Also, summer blackouts are in full force due to powerful storms. Clark explains a few options to help us feel prepared.
☎️ Need Money Help?
The Team Clark Consumer Action Center is a free helpline that can help you navigate your money questions. Call 636-492-5275. Visit clark.com/cac for more information.
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