Upswing in Credit Default Rates - Other News

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most 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 » Other » Upswing in Credit Default Rates

Upswing in Credit Default Rates

Upswing in Credit Default Rates
January
25
The content is accurate at the time of publication and is subject to change.

Consumer credit default rates were up in December of last year, according to the S&P/Experian Consumer Credit Default Indices, providing data on changes in consumer credit defaults. The data shows that the composite rate went up two basis points, between November and December going to 0.91%.

What about the bank card default rate? It was up 16 basis points hitting 3.44% for the same time period, while the auto loan default rate actually went down a single basis point from November, falling to 1.10%. Last but not least, the first mortgage default rate went up by two basis points reaching 0.68%.

This data was not a surprise to those at the S&P Dow Jones Indices. “The default rate on bank cards has been rising consistently since December 2015,” says David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices.

“Defaults on auto loans are up slightly and first mortgage defaults are little changed over the last two to three years. Continued low unemployment and low inflation, rising home prices and stock market gains combined with gains in consumer confidence to support strong gains in retail sales in the last four months of 2017,” he said. “However, the same expansion in consumer spending is now appearing in the bank card default data.”

The big five see rate upswing too

Five major cities saw their default rates go up in December too: Chicago, New York, Los Angeles, Miami, and Dallas.

How much did they rise? Chicago saw the biggest upswing, up by six basis points hitting 1.15%. On the other hand, Dallas was up by three basis points (0.85%), and New York City was by two basis points (0.95%).

And last but not least both Miami (0.98%) and Los Angeles (0.77%) were up by a single point each.

Auto rates down

They found that the auto loan default rate was down by a single point. This is the first time this has happened since June 2017.

Yet bank card default rates hit their biggest increase since May of 2017, while first mortgage default rates held their own staying in the 20 basis point range for just about the last two years.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

Tips for Reducing Debt from NAPFA
Tips for Reducing Debt from NAPFA

Posted: January 15, 2018

Credit card debt is an issue for some especially after holiday shopping so the National Association of Personal Financial Advisors (NAPFA) has come up with some ways people can reduce debt, which includes everything from lowering interest... Continue reading
Credit Card Default Rates Are Up
Credit Card Default Rates Are Up

Posted: March 30, 2018

The February 2018 consumer credit default indices by S&P and Experian are out. They show that credit card default rates are up seven basis points, hitting 3.64 percent. On the other hand, the rate for auto loan defaults rose just two... Continue reading
New Visa Cards From CRYPTO.com

Posted: July 17, 2018

CRYPTO.com, a payments and cryptocurrency platform, is now offering three new cards - Icy White, Jade Green and Royal Indigo. These are Cryptocurrency-based credit cards. With them, people can get a wide range of perks and benefits, ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs up to the quarterly maximum each time you activate.
For Excellent, Good Credit
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
0% Intro APR on Balance Transfers and Purchases for 18 months. After that, the variable APR will be 15.74% - 25.74% based on your creditworthiness*
For Excellent, Good Credit
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!