Consumers have been more likely to borrow money in recent months, and they continued the trend in January. The Federal Reserve says borrowing grew by 17.8 billion that month, bringing the total to almost pre-recession levels, The Associated Press reports.

One of the biggest reasons for the increase was a jump in the number of people applying for auto and student loans. Economists pointed out that this is the most consumers have borrowed in that segment for more than a decade. The findings are encouraging and signal growing confidence that the economy is well on its way to recovery.

"We have begun to see in the past few months a sign of greater confidence with households more willing to take on debt," economist Ellen Zentner told the AP. "As long as we keep having job growth, I expect to see credit growth pick up."

While the climate for auto loans is improving, that doesn't mean consumers should not take the same appropriate steps when getting approved for financing. According to Edmunds, there are a number of things you should do, especially in a recovering economy.

Perhaps the most important step to take before applying for a loan is to get a credit check. Not only will this give you a good idea of your standing but it will help you iron out any discrepancies there might be. Additionally, you should be prepared to make a larger down payment given the economy.

Regardless of your credit situation, New Jersey State Auto Auction offers guaranteed approval. Thanks to a partnership with the Credit Acceptance Corporation, NJ Auto can have you driving away in a quality used car in no time.