Credit Default Rates Down - Legal News

Advertising Disclosure

Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Legal » Credit Default Rates Down

Credit Default Rates Down

Add to Favorites:
Credit Default Rates Down
April
18

Consumer credit default rates fell in March and the retail sector showed some gains, according to the S&P/Experian Consumer Credit Default Indices.

“Along with signs that the economy is improving, consumer credit default rates continue to gradually decline,” said David Blitzer, managing director for the S&P Dow Jones Indices.

Bank cards and auto loans hit historic default lows. Overall default rates are now in line with pre-recession rates. The bank card default rate in March was 2.73%, down from last year when it was 3.51%. Auto loan default rates are currently at less than 1%. First mortgage rates had a default rate of 1.13%, second mortgages defaulted only .60%.

Consumer confidence is up

Lower default rates combined with other positive factors including fewer people filing for unemployment benefits and increased economic levels, suggest that consumer spending may continue to increase.

The survey took a close look at the numbers from New York, Los Angeles, Miami, Dallas and Chicago, all of which showed across-the-board decreases in credit line defaults last month.

The regional picture

Los Angeles had the lowest default rate since July 2006 coming in at 1.04%. Miami showed the biggest decrease in defaults when compared with last year, down 86 points, yet it still has the highest default rate of all the cities they looked at. Dallas has the lowest.

 

City

March 2014
Default rate

March 2013
Default rate

New York

1.37%

1.79%

Chicago

1.52%

1.83%

Dallas

0.97%

1.20%

Los Angeles

1.04%

1.48%

Miami

2.07%

2.93%

 

The S&P/Experian Consumer Credit Default Indices are a join project of S&P Dow Jones and Experian. This report tracks default trends in four areas – bank card, auto, first mortgage lien and second mortgage lien. The consumer loan and payment information used to generate this report is from the Experian’s database, which includes data submitted by 11,500 lenders, and represents $11 trillion in outstanding loans.

All credit cards terms, fees and rates mentioned in this article/post are actual on the posting date. See the current products’ Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

Wells Fargo's Go Far Rewards Lets You Pay Down Your Loans
Wells Fargo's Go Far Rewards Lets You Pay Down Your Loans

Posted: April 13, 2016

Wells Fargo is rolling out their Go Far Rewards program, giving people the ability to apply their rewards to a variety of financial products, ranging from paying down loans to getting a credit in their checking or savings account. Continue reading
College Website By Discover Unveiled
College Website By Discover Unveiled

Posted: September 22, 2017

Discover has a launched College Covered, a new website designed to provide high school students, parents and guidance counselors the inside scoop on the ins and outs of preparing for college, whether that is writing their essay, tips on... Continue reading
Personal Loans Lend a Helpful Hand
Personal Loans Lend a Helpful Hand

Posted: October 17, 2017

People take out personal loans for many reasons, and according to a new study by Discover, 68% said that taking out a loan made it possible for them to achieve their goals, whether they wanted to pay down debt, deal with medical bills or... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
We'll match all the Miles you've earned at the end of your first year. For example, if you earn 30,000 Miles, you get 60,000 Miles.
For Excellent, Good Credit
INTRO OFFER: Discover will match ALL the cash back earned at the end of your first year, automatically.
For Excellent, Good Credit
Our application is quick and easy with instant pre-qualification available
For Fair / Good Credit