Posts Tagged ‘bank card’

Credit Card Delinquencies Are Rising

Posted on November 01, 2017 by Laura Lam

While it’s easy to ignore when the stock market is at record highs and unemployment is reassuringly low, household debt is on the rise.  The Center for Microeconomic Data’s (CMD) latest Quarterly Report on Household Debt and Credit reveals that total household debt rose by $114 billion (0.9%) to $12.84 trillion in the second quarter of 2017.  This increase put overall household debt $164 billion above its peak in the third quarter of 2008, and 15.1% above its trough in the second quarter of 2013 Consumer debt, in many ways, should generate more concern – during the good times.  The persistence of…

Mortgage Default Rates Begin to Rise

Posted on October 24, 2017 by Laura Lam

Mortgage defaults in September were slightly higher than in the previous month and are still lower than a year ago but they are closer to matching levels seen in 2016.  The default rate for first mortgages last month was 0.66%, up a basis point from August, but down a basis point from September a year ago, according to Standard & Poor’s and Experian. Second-mortgage default rates were three basis points higher on a consecutive-month basis at 0.53% but were 3 basis points lower year-to-year.  The composite default rate for mortgage, bank card and auto loan credit was up 2 basis points from…

Consumer Delinquencies Improve in 2Q

Posted on October 16, 2017 by Laura Lam

Delinquencies in closed-end loans held steady in the second quarter as bank card delinquencies fell and home-related categories continued their return to normal levels, according to results from the American Bankers Association’s Consumer Credit Delinquency Bulletin. Overall, delinquencies fell in 8 of the 11 individual consumer loan categories.  The composite ratio, which tracks delinquencies in 8 closed-end installment loan categories, remained at 1.56% of all accounts – well below the 15-year average of 2.16%. “Delinquencies remain below historical levels as consumers continue to show great command of their finances,” said James Chessen, ABA’s chief economist. “The outlook remains very positive,…

Auto and Mortgage Loan Defaults at Lowest Level in Decade

Posted on August 29, 2017 by Laura Lam

Despite a slight increase in July, the default rate for first mortgage loans still sits at its lowest point in the last 10 years, according to the latest S&P/Experian Consumer Credit Default Indices.  In fact, the mortgage default rate for first and second mortgages aren’t too far off from their July 2016 level, as homebuyers get better at paying their mortgage on time. The indices represent a comprehensive measure of changes in consumer credit defaults and include bank card and auto loan default rates. As seen in the chart on the left, the first mortgage default rate increased two basis…

Consumer Delinquencies on the Rise

Posted on July 06, 2017 by Laura Lam

Delinquencies in both open- and closed-end loans rose in the first quarter of 2017, according to the ABA Consumer Credit Delinquency Bulletin released today.  The rise in closed-end delinquencies was driven by an uptick in late payments on auto loans, the report noted. The composite ratio, which tracks delinquencies in the closed-end installment loan categories, rose 5 basis points to 1.56% of all accounts, but remained well below the 15-year average of 2.17%. Delinquencies in indirect auto loans rose 8 basis points to 1.83% of all accounts, while direct auto lending delinquencies increased by 9 points to 1.03% of all accounts….

Bank Card Default Rate Increases, Auto Loan Defaults Down

Posted on May 15, 2017 by Laura Lam

The S&P/Experian Consumer Credit Default Indices, a comprehensive measure of changes in consumer credit defaults, shows the composite rate unchanged from last month at 0.94% in March. The bank card default rate recorded a 3.31% default rate, up 9 basis points from February. Auto loan defaults came in at 1.00%, down 5 basis points from the previous month. The first mortgage default rate came in at 0.75%, up one basis point from February and reaching a one-year high. The 5 major cities showed mixed results in March with two higher and three lower default rates. New York had the largest…

Bank Card and Mortgage Defaults Tick Upward

Posted on April 06, 2017 by Laura Lam

Data from the recent S&P/Experian Consumer Credit Default Indices report shows the composite rate up two basis points from last month at 0.94% in February. The bank card default rate recorded a 3.22% default rate, up one basis point from January. Auto loan defaults came in at 1.05%, down one basis point from the previous month. The first mortgage default rate came in at 0.74%, up two basis points from January. The 5 major cities showed mixed results in February with two higher default rates, two lower, and one unchanged. Dallas had the largest increase, reporting 0.83%, up eight basis…

Sharp Decline For Consumer Loan Delinquencies

Posted on November 05, 2015 by Saldutti

Consumer loan delinquencies fell sharply in the second quarter ended June 30, thanks to large drops in home loan-related delinquencies, according to the American Bankers Association.  Delinquencies fell in 7 of the 11 loan categories.  The composite ratio, which tracks delinquencies in eight closed-end installment loan categories, dropped 17 basis points to 1.36% of all accounts – well under the 15-year average of 2.27%. Bank card delinquencies rose by three basis points to 2.52% of all accounts, also well below their 15-year average of 3.74%. Home equity lines of credit delinquencies fell from 1.42% to 1.34%. Non-card revolving loan delinquencies fell…

10 Signs That You're a Credit Card Addict

Posted on March 12, 2014 by Saldutti

For some, a credit card is just another wallet-burning mechanism, similar to cash, that must be used to satisfy some personal need or desire. But what happens when the magic plastic is no longer available? Can you move on with everyday life without any interruptions? Or does your world suddenly come crashing down right before your eyes? Here are a 10 distinct ways to determine if you are a credit card junkie, from   You’re in denial – This may be one of the most prominent indicators that you are addicted to the magic plastic. If you have no…

U.S. Is The World Leader in Credit Card Fraud

Posted on December 08, 2011 by Saldutti

A new paper in The Nilson report dubbed the U.S. the world’s credit fraud leader, with 47% of the world’s debit and credit fraud occurring on our shores.  This is despite the fact that America only generates 27% of the world’s “total volume of purchases and cash.” Wheras banking institutions in Europe, Africa, Asia, the Middle East and Latin America have been swift to adopt stricter security systems, such as having users punch in one-time passwords for cards-not-present (CNP) transactions and imbuing cards with computerized chips, U.S. banks have been slower to adopt the new technologies due to fear of…