S&P/Experian Consumer Credit Default Indices Show Bank Card Default Rates Continued To Climb In February 2018
Bank Card Default Rates at Highest Level Since October 2012

NEW YORK, March 20, 2018 /PRNewswire/ -- S&P Dow Jones Indices and Experian released today data through February 2018 for the S&P/Experian Consumer Credit Default Indices. The indices represent a comprehensive measure of changes in consumer credit defaults and show that the composite rate increased one basis point from January to 0.96%. The bank card default rate rose seven basis points to 3.64%. The auto loan default rate was up two basis points from last month to 1.09%. The first mortgage default rate was unchanged at 0.72%.

Two of the five major cities saw an increase in composite default rates in February. Miami had the largest rise, up 27 basis points to 1.54%, while Dallas moved two basis points higher, to 0.89%. The default rate for Los Angeles dropped 13 basis points to 0.64%. Chicago had a decrease of eight basis points to 1.15%, while the rate for New York fell one basis point to 0.94%.

Bank card default rates have been higher or unchanged for five consecutive months, and now are at their highest level since October 2012. Auto loan and first mortgage default rates continue to remain stable.

"The overall consumer credit default picture continues to be favorable," says David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices. "Default rates on first mortgages and auto loans are little changed in the past year or two. Recent small increases in mortgage and automobile loan interest rates do not appear to be affecting default trends. The currently favorable economic conditions – low unemployment, stable inflation and expectations that current conditions will continue – all support the good credit default conditions.

"One anomaly in the data is the default rate on bank cards. The rate has been trending upward since its December 2015 low and has not been below 2.49% in more than two years. While interest rates on bank cards are substantially higher than the rates on other forms of consumer borrowing, they are little changed in the last two or three years. Different measures of consumer debt service do not point to increased credit problems. Retail sales are rising with the improving economy, but not by enough to outpace incomes and lead to rising default rates. After 15 consecutive months with the bank card default rates higher than year-earlier levels, this trend could be a hint of unrecognized issues."

The table below summarizes the February 2018 results for the S&P/Experian Credit Default Indices. These data are not seasonally adjusted and are not subject to revision.

S&P/Experian Consumer Credit Default Indices

National Indices

 

Index

February 2018 Index
Level

January 2018
Index Level

February 2017 Index
Level

Composite

0.96

0.95

0.94

First Mortgage

0.72

0.72

0.74

Bank Card

3.64

3.57

3.22

Auto Loans

1.09

1.07

1.05

Source: S&P/Experian Consumer Credit Default Indices

Data through February 2018

The table below provides the S&P/Experian Consumer Default Composite Indices for the five MSAs:

Metropolitan 
Statistical Area

February 2018 Index
Level

January 2018
Index Level

February 2018 Index
Level

New York

0.94

0.95

0.94

Chicago

1.15

1.23

0.99

Dallas

0.89

0.87

0.83

Los Angeles

0.64

0.77

0.80

Miami

1.54

1.27

1.42

Source: S&P/Experian Consumer Credit Default Indices

Data through February 2018

For more information about S&P Dow Jones Indices, please visit www.spdji.com.

ABOUT THE S&P/EXPERIAN CONSUMER CREDIT DEFAULT INDICES

Jointly developed by S&P Dow Jones Indices LLC and Experian, the S&P/Experian Consumer Credit Default Indices are published on the third Tuesday of each month at 9:00 am ET. They are constructed to track the default experience of consumer balances in four key loan categories: auto, bankcard, first mortgage lien and second mortgage lien. The Indices are calculated based on data extracted from Experian's consumer credit database. This database is populated with individual consumer loan and payment data submitted by lenders to Experian every month. Experian's base of data contributors includes leading banks and mortgage companies, and covers approximately $11 trillion in outstanding loans sourced from 11,500 lenders.

For more information, please visit: www.consumercreditindices.standardandpoors.com.

ABOUT S&P DOW JONES INDICES

S&P Dow Jones Indices is the largest global resource for essential index-based concepts, data and research, and home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average®. More assets are invested in products based on our indices than products based on indices from any other provider in the world. Since Charles Dow invented the first index in 1884, S&P DJI has become home to over 1,000,000 indices across the spectrum of asset classes that have helped define the way investors measure and trade the markets.

S&P Dow Jones Indices is a division of S&P Global (NYSE: SPGI), which provides essential intelligence for individuals, companies and governments to make decisions with confidence. For more information, visit www.spdji.com.

ABOUT EXPERIAN

Experian is the world's leading global information services company. During life's big moments – from buying a home or a car, to sending a child to college, to growing a business by connecting with new customers – we empower consumers and our clients to manage their data with confidence. We help individuals to take financial control and access financial services, businesses to make smarter decisions and thrive, lenders to lend more responsibly, and organizations to prevent identity fraud and crime.

We have more than 16,000 people operating across 37 countries and every day we're investing in new technologies, talented people and innovation to help all our clients maximize every opportunity. We are listed on the London Stock Exchange (EXPN) and are a constituent of the FTSE 100 Index.

Learn more at www.experianplc.com or visit our global content hub at our global news blog for the latest news and insights from the Group

FOR MORE INFORMATION:

David Blitzer
Managing Director and Chairman of Index Committee
New York, USA
(+1) 212 438 3907
[email protected]

Luke Shane
North America Communications
New York, USA
(+1) 212 438 8184
[email protected]

Jordan Takeyama
Experian Public Relations
(+1) 714 830 7561
[email protected]

SOURCE S&P Dow Jones Indices