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Bank card default rate his 42-month high

Data through January 2017, released by S&P Dow Jones Indices and Experian for the S&P/Experian Consumer Credit Default Indices, a comprehensive measure of changes in consumer credit defaults, shows the composite rate up three basis points from the previous month at 0.92 percent in January, according to a press release.

The bank card default rate recorded a 3.21 percent default rate, up 26 basis points from December. Auto loan defaults came in at 1.06 percent, up three basis points from the previous month. The first mortgage default rate was 0.72 percent, up one basis point from December.
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Bank card default rate his 42-month high

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Data through January 2017, released by S&P Dow Jones Indices and Experian for the S&P/Experian Consumer Credit Default Indices, a comprehensive measure of changes in consumer credit defaults, shows the composite rate up three basis points from the previous month at 0.92 percent in January, according to a press release.

The bank card default rate recorded a 3.21 percent default rate, up 26 basis points from December. Auto loan defaults came in at 1.06 percent, up three basis points from the previous month. The first mortgage default rate was 0.72 percent, up one basis point from December.

All five major cities saw their default rates increase in the month of January. Miami had the largest increase, reporting 1.67 percent, up 14 basis points from December. Miami’s composite default rate is at a 31-month high. Dallas and Los Angeles both reported eight basis point increases from the previous month at 0.75 percent and 0.80 percent, respectively, in January. Chicago saw its default rate increase five basis points to 1.03 percent. New York reported a default rate increase of one basis point from the last month at 0.88 percent.

When comparing the bank card default rates among the four census divisions, the default rate in the south is considerably higher than the other three census divisions.

While consumer credit default rates on mortgages and auto loans remain low and stable, default rates on bank cards have popped up to the highest level seen since July 2013, David M. Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices, said in a press release.

“Recent data point to consumer optimism: retail sales rose 5.5 percent in January 2017 compared to a year earlier, consumer sentiment measures rose over the last two years, and employment and labor market conditions are favorable," he said. "Federal Reserve data on consumer credit and mortgage debt outstanding reveal that consumers are borrowing money."

 

 

 

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