Consumer Credit Default Rates Dip in July: S&P/Experian

Consumer credit default rates continued declining to historical lows in July.

The S&P Dow Jones/Experian national composite index was 1.01% in July, which is down one basis point from the previous month and a 34 basis point drop compared to a year ago. The latest July percentage represents the lowest default rate in over 10 years, S&P/Experian said.

First mortgage default rates fell for the ninth consecutive month, to 0.88%. This index decreased one basis point from June and 37 basis points from a year earlier.

Bank card default rates experienced the biggest month-over-month drop of 16 basis points, to 2.86%. Meanwhile, S&P/Experian revealed that auto loan defaults remained unchanged in July from June, at 0.96%, which is only four basis points higher than its all-time low.

Additionally, all five cities that S&P/Experian tracks saw default rates remain below their percentages a year ago.

Miami had the largest July default rate, at 1.51%, a mark not seen since 2006. Conversely, Los Angeles posted its lowest default rate of 0.66%. Dallas' current default rate of 0.80% is three basis points below its historical low, while Chicago's 1.17% default rate is the lowest in eight years. Lastly, New York had a 1.14% credit default rate.

Next in Servicing ►
More in Servicing See All »
Comments (0)

Be the first to comment on this post using the section below.

Add Your Comments:
Not Registered?
You must be registered to post a comment. Click here to register.
Already registered? Log in here
Please note you must now log in with your email address and password.