Welcome!

News Feed Item

TransUnion: National Credit Card Delinquency Hits Lowest Level in at Least Seven Years

CHICAGO, IL -- (Marketwired) -- 08/26/14 -- The national credit card delinquency rate declined to its lowest level in at least seven years, dropping from 1.27% in Q2 2013 to 1.16% in Q2 2014. The latest TransUnion Industry Insights Report found that the credit card delinquency rate (the ratio of borrowers 90 days or more delinquent on their general purpose credit cards) dropped nearly 9% in the last year while falling more than 15% in the last quarter (from 1.37% in Q1 2014).

Average credit card debt per borrower remained almost unchanged in the last year, increasing slightly from $5,226 in Q2 2013 to $5,234 in Q2 2014. On a quarterly basis, credit card debt increased from $5,164 in Q1 2014.

The data provided are gathered from TransUnion's proprietary Industry Insights Report, a quarterly overview summarizing data, trends and perspectives on the U.S. consumer lending industry. The report is based on anonymized credit data from virtually every credit-active consumer in the United States."

"Consumers continue to have a good handle on their credit cards, with delinquencies at all-time lows across the spectrum," said Ezra Becker, vice president of research and consulting in TransUnion's financial services business unit. "We observed that delinquency rates are dropping for all age groups, and at relatively similar rates."

90+ Day Credit Card Delinquency Rates for Various Age Groups

----------------------------------------------------------------------------
     Age Range           Q2 2013            Q2 2014          PCT. Change
----------------------------------------------------------------------------
      Under 30            1.76%              1.63%              -7.35%
----------------------------------------------------------------------------
       30-39              1.74%              1.56%             -10.31%
----------------------------------------------------------------------------
       40-49              1.63%              1.48%              -8.85%
----------------------------------------------------------------------------
       50-59              1.20%              1.11%              -7.74%
----------------------------------------------------------------------------
        60+               0.72%              0.68%              -4.74%
----------------------------------------------------------------------------

While delinquency rates dropped for all age groups, the credit card balance picture was more complex. The two oldest age groups -- ages 50-59 and those 60 or older -- saw a material increase in their credit card balances. All other age groups experienced relatively small declines in balances.

"Traditionally, consumers carry heavier debt loads between the ages of 40 and 60 as they are in their peak purchasing years," said Becker. "They also tend to spend more on items such as new cars, home furnishings, college tuition for their children, etc. As we've noted in recent quarters, younger consumers continue to have lower debt levels -- which can be attributed in part to limited access to card credit and a greater reliance on debit cards, among other factors."

Average Credit Card Balances for Various Age Groups

----------------------------------------------------------------------------
     Age Range           Q2 2013            Q2 2014          PCT. Change
----------------------------------------------------------------------------
      Under 30            $2,135             $2,135            -0.01%
----------------------------------------------------------------------------
       30-39              $4,871             $4,816             -1.14%
----------------------------------------------------------------------------
       40-49              $6,724             $6,713             -0.16%
----------------------------------------------------------------------------
       50-59              $6,765             $6,805             0.60%
----------------------------------------------------------------------------
        60+               $4,802             $4,891             1.86%
----------------------------------------------------------------------------

Only one state -- Alaska -- experienced an increase in its credit card delinquency rate between Q2 2013 and Q2 2014. The largest percentage delinquency declines occurred in Massachusetts, Wisconsin, Arizona and Illinois. Of the largest cities in the U.S., Boston (-18.19%), San Francisco (-17.98%) and Chicago (-14.05%) saw the biggest declines in credit card delinquency rates.

Credit card debt per borrower decreased in only 13 states on a yearly basis. However, several major cities experienced declines, including: Phoenix (-2.59% from $5,347 in Q2 2013 to $5,277 in Q2 2014), Miami (-1.31% from $5,347 in Q2 2013 to $5,277 in Q2 2014) and San Francisco (-1.11% from $5,568 in Q2 2013 to $5,506 in Q2 2014).

TransUnion reported 349.79 million credit card accounts as of Q2 2014, up from 332.26 million in Q2 2013. Viewed one quarter in arrears (to ensure all accounts are included in the data), new account originations increased 17.75% to 11.73 million in Q1 2014, up from 9.96 million in Q1 2013.

TransUnion's latest credit card report also found that the non-prime population (those consumers with a VantageScore® 2.0 credit score lower than 700) represents a larger portion of all new credit card loans at 31.2% in Q1 2014, up from 27.3% in the same period last year. In Q1 2007, the non-prime population represented 40.1% of all credit card originations for that quarter.

"Credit cards continue to perform well even with a higher percentage of non-prime consumers entering the market," said Toni Guitart, director of research and consulting in TransUnion's financial services business unit. "We also noted an increase in credit card limits, which points to lenders feeling they can take on more risk while giving consumers a bigger credit cushion."

This information is reported by TransUnion and is part of its ongoing series of quarterly analyses of credit-active U.S. consumers and how they are managing credit related to mortgages, credit cards and auto loans. To subscribe to TransUnion news releases, please click here.

Q2 2014 Credit Card Statistics - Consumer-Level Delinquency Rates

Quarter over Quarter        Q1 2014           Q2 2014         Pct. Change
----------------------------------------------------------------------------
 USA                               1.37%             1.16%            (8.7%)
----------------------------------------------------------------------------

Year over Year              Q2 2013           Q2 2014         Pct. Change
----------------------------------------------------------------------------
 USA                               1.27%             1.16%           (15.3%)
----------------------------------------------------------------------------

Credit Card Consumer Delinquency Rates for Select States        Q2 2014
----------------------------------------------------------------------------
 California                                                            1.14%
----------------------------------------------------------------------------
 Florida                                                               1.39%
----------------------------------------------------------------------------
 Illinois                                                              1.00%
----------------------------------------------------------------------------
 New York                                                              1.23%
----------------------------------------------------------------------------
 Texas                                                                 1.30%
----------------------------------------------------------------------------

Largest Year-over-Year Declines              Q2 2013    Q2 2014  Pct. Change
----------------------------------------------------------------------------
 Massachusetts                                   1.26%      1.03%    (18.3%)
----------------------------------------------------------------------------
 Wisconsin                                       0.80%      0.68%    (15.0%)
----------------------------------------------------------------------------
 Arizona                                         1.44%      1.23%    (14.6%)
----------------------------------------------------------------------------

Largest Year-over-Year Increases             Q2 2013    Q2 2014  Pct. Change
----------------------------------------------------------------------------
 Alaska                                          1.13%      1.19%       5.3%
----------------------------------------------------------------------------

Q2 2014 Credit Card Statistics - Credit Card Debt Per Borrower


Quarter over Quarter        Q1 2014           Q2 2014         Pct. Change
----------------------------------------------------------------------------
 USA                              $5,164            $5,234              1.4%
----------------------------------------------------------------------------

Year over Year              Q2 2013           Q2 2014         Pct. Change
----------------------------------------------------------------------------
 USA                              $5,226            $5,234              0.2%
----------------------------------------------------------------------------

Credit Card Debt per Borrower for Select States                 Q2 2014
----------------------------------------------------------------------------
 California                                                           $5,293
----------------------------------------------------------------------------
 Florida                                                              $5,229
----------------------------------------------------------------------------
 Illinois                                                             $5,284
----------------------------------------------------------------------------
 New York                                                             $5,396
----------------------------------------------------------------------------
 Texas                                                                $5,465
----------------------------------------------------------------------------

Largest Year-over-Year
Declines                    Q2 2013           Q2 2014         Pct. Change
----------------------------------------------------------------------------
 Arizona                          $5,349            $5,241            (2.0%)
----------------------------------------------------------------------------
 Colorado                         $5,718            $5,643            (1.3%)
----------------------------------------------------------------------------
 Alaska                           $6,851            $6,765            (1.3%)
----------------------------------------------------------------------------

Largest Year-over-Year
Increases                   Q2 2013           Q2 2014         Pct. Change
----------------------------------------------------------------------------
 Vermont                          $4,850            $4,937              1.8%
----------------------------------------------------------------------------
 West Virginia                    $4,589            $4,667              1.7%
----------------------------------------------------------------------------
 Virginia                         $5,866            $5,964              1.7%
----------------------------------------------------------------------------

About TransUnion
As a global leader in credit and information management, TransUnion creates advantages for millions of people around the world by gathering, analyzing and delivering information. For businesses, TransUnion helps improve efficiency, manage risk, reduce costs and increase revenue by delivering comprehensive data and advanced analytics and decisioning. For consumers, TransUnion provides the tools, resources and education to help manage their credit health and achieve their financial goals. Through these and other efforts, TransUnion is working to build stronger economies worldwide. Founded in 1968 and headquartered in Chicago, TransUnion reaches businesses and consumers in 33 countries around the world on five continents. www.transunion.com/business

Image Available: http://www2.marketwire.com/mw/frame_mw?attachid=2663994

Contact
Dave Blumberg
TransUnion
E-mail Email Contact
Telephone (312) 985 3059

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
We’ve worked with dozens of early adopters across numerous industries and will debunk common misperceptions, which starts with understanding that many of the connected products we’ll use over the next 5 years are already products, they’re just not yet connected. With an IoT product, time-in-market provides much more essential feedback than ever before. Innovation comes from what you do with the data that the connected product provides in order to enhance the customer experience and optimize busi...
In his session at 18th Cloud Expo, Sagi Brody, Chief Technology Officer at Webair Internet Development Inc., will focus on real world deployments of DDoS mitigation strategies in every layer of the network. He will give an overview of methods to prevent these attacks and best practices on how to provide protection in complex cloud platforms. He will also outline what we have found in our experience managing and running thousands of Linux and Unix managed service platforms and what specifically c...
In his session at @ThingsExpo, Chris Klein, CEO and Co-founder of Rachio, will discuss next generation communities that are using IoT to create more sustainable, intelligent communities. One example is Sterling Ranch, a 10,000 home development that – with the help of Siemens – will integrate IoT technology into the community to provide residents with energy and water savings as well as intelligent security. Everything from stop lights to sprinkler systems to building infrastructures will run ef...
Redis is not only the fastest database, but it has become the most popular among the new wave of applications running in containers. Redis speeds up just about every data interaction between your users or operational systems. In his session at 18th Cloud Expo, Dave Nielsen, Developer Relations at Redis Labs, will shares the functions and data structures used to solve everyday use cases that are driving Redis' popularity.
Many private cloud projects were built to deliver self-service access to development and test resources. While those clouds delivered faster access to resources, they lacked visibility, control and security needed for production deployments. In their session at 18th Cloud Expo, Steve Anderson, Product Manager at BMC Software, and Rick Lefort, Principal Technical Marketing Consultant at BMC Software, will discuss how a cloud designed for production operations not only helps accelerate developer...
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, will discuss how leveraging the Industrial Interne...
The increasing popularity of the Internet of Things necessitates that our physical and cognitive relationship with wearable technology will change rapidly in the near future. This advent means logging has become a thing of the past. Before, it was on us to track our own data, but now that data is automatically available. What does this mean for mHealth and the "connected" body? In her session at @ThingsExpo, Lisa Calkins, CEO and co-founder of Amadeus Consulting, will discuss the impact of wea...
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
Increasing IoT connectivity is forcing enterprises to find elegant solutions to organize and visualize all incoming data from these connected devices with re-configurable dashboard widgets to effectively allow rapid decision-making for everything from immediate actions in tactical situations to strategic analysis and reporting. In his session at 18th Cloud Expo, Shikhir Singh, Senior Developer Relations Manager at Sencha, will discuss how to create HTML5 dashboards that interact with IoT devic...
Struggling to keep up with increasing application demand? Learn how Platform as a Service (PaaS) can streamline application development processes and make resource management easy.
Up until last year, enterprises that were looking into cloud services usually undertook a long-term pilot with one of the large cloud providers, running test and dev workloads in the cloud. With cloud’s transition to mainstream adoption in 2015, and with enterprises migrating more and more workloads into the cloud and in between public and private environments, the single-provider approach must be revisited. In his session at 18th Cloud Expo, Yoav Mor, multi-cloud solution evangelist at Cloudy...
Artificial Intelligence has the potential to massively disrupt IoT. In his session at 18th Cloud Expo, AJ Abdallat, CEO of Beyond AI, will discuss what the five main drivers are in Artificial Intelligence that could shape the future of the Internet of Things. AJ Abdallat is CEO of Beyond AI. He has over 20 years of management experience in the fields of artificial intelligence, sensors, instruments, devices and software for telecommunications, life sciences, environmental monitoring, process...
The demand for organizations to expand their infrastructure to multiple IT environments like the cloud, on-premise, mobile, bring your own device (BYOD) and the Internet of Things (IoT) continues to grow. As this hybrid infrastructure increases, the challenge to monitor the security of these systems increases in volume and complexity. In his session at 18th Cloud Expo, Stephen Coty, Chief Security Evangelist at Alert Logic, will show how properly configured and managed security architecture can...
Unless you don’t use the internet, don’t live in California, or haven’t been paying attention to the recent news… you should be aware that self-driving cars are on their way to becoming a reality. I have seen them – they are real. If you believe in the future reality of self-driving cars, then continue reading on. If you don’t believe in the future possibilities, then I am not sure what to do to convince you other than discuss the very real changes that will roll out with the consumer producti...
A critical component of any IoT project is the back-end systems that capture data from remote IoT devices and structure it in a way to answer useful questions. Traditional data warehouse and analytical systems are mature technologies that can be used to handle large data sets, but they are not well suited to many IoT-scale products and the need for real-time insights. At Fuze, we have developed a backend platform as part of our mobility-oriented cloud service that uses Big Data-based approache...