Credit services businesses are those that extend credit to individuals and businesses for a wide range of purposes. Credit may be needed to buy a house, run a business, go to college, or buy a car. There are many other reasons, but the space is fairly competitive. Credit Acceptance Corporation focuses on car buying and has established a niche in serving customers who would struggle to get a loan from conventional institutions because of their credit scores. If you are compiling a top credit services stocks list, then you may want to add Credit Acceptance Corporation because of its niche. The subprime auto lending business caters to two sets of customers. First are the individuals who do not have very good credit scores. The second is the auto businesses and dealerships that want to increase their sales by catering to the demand from subprime customers.
Price Trends Of Credit Acceptance Corporation
Credit Acceptance Corporation’s stock broke out recently after going nowhere for almost three years. From September 2018 to July 2021, the stock was swinging between a range. However, the recent news of the company settling a lawsuit brought forward by the attorney general of Massachusetts seems to have triggered a breakout. The price broke out of the $300-$500 range and touched a high of more than $660 before pulling back by about 10%. The year 2021 has been a good one for Credit Acceptance Corporation as its stock has made higher highs and higher lows consistently. It is in a classic uptrend as per the Dow theory. Momentum investors may find such price action interesting. Those looking for the best credit services stocks may want to consider looking at companies like Credit Acceptance Corporation.
Top Credit Services Stocks
Credit services businesses are increasingly being impacted by technology. The concept of blockchain may also be a potentially disruptive development. Credit services stocks are trending up, and giants like Mastercard are also making acquisitions.