Click here to close now.




















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
Skeuomorphism usually means retaining existing design cues in something new that doesn’t actually need them. However, the concept of skeuomorphism can be thought of as relating more broadly to applying existing patterns to new technologies that, in fact, cry out for new approaches. In his session at DevOps Summit, Gordon Haff, Senior Cloud Strategy Marketing and Evangelism Manager at Red Hat, discussed why containers should be paired with new architectural practices such as microservices rathe...
With the proliferation of connected devices underpinning new Internet of Things systems, Brandon Schulz, Director of Luxoft IoT – Retail, will be looking at the transformation of the retail customer experience in brick and mortar stores in his session at @ThingsExpo. Questions he will address include: Will beacons drop to the wayside like QR codes, or be a proximity-based profit driver? How will the customer experience change in stores of all types when everything can be instrumented and a...
It’s been proven time and time again that in tech, diversity drives greater innovation, better team productivity and greater profits and market share. So what can we do in our DevOps teams to embrace diversity and help transform the culture of development and operations into a true “DevOps” team? In her session at DevOps Summit, Stefana Muller, Director, Product Management – Continuous Delivery at CA Technologies, answered that question citing examples, showing how to create opportunities for ...
As more and more data is generated from a variety of connected devices, the need to get insights from this data and predict future behavior and trends is increasingly essential for businesses. Real-time stream processing is needed in a variety of different industries such as Manufacturing, Oil and Gas, Automobile, Finance, Online Retail, Smart Grids, and Healthcare. Azure Stream Analytics is a fully managed distributed stream computation service that provides low latency, scalable processing of ...
Everyone talks about continuous integration and continuous delivery but those are just two ends of the pipeline. In the middle of DevOps is continuous testing (CT), and many organizations are struggling to implement continuous testing effectively. After all, without continuous testing there is no delivery. And Lab-As-A-Service (LaaS) enhances the CT with dynamic on-demand self-serve test topologies. CT together with LAAS make a powerful combination that perfectly serves complex software developm...
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
Any Ops team trying to support a company in today’s cloud-connected world knows that a new way of thinking is required – one just as dramatic than the shift from Ops to DevOps. The diversity of modern operations requires teams to focus their impact on breadth vs. depth. In his session at DevOps Summit, Adam Serediuk, Director of Operations at xMatters, Inc., will discuss the strategic requirements of evolving from Ops to DevOps, and why modern Operations has begun leveraging the “NoOps” approa...
As more intelligent IoT applications shift into gear, they’re merging into the ever-increasing traffic flow of the Internet. It won’t be long before we experience bottlenecks, as IoT traffic peaks during rush hours. Organizations that are unprepared will find themselves by the side of the road unable to cross back into the fast lane. As billions of new devices begin to communicate and exchange data – will your infrastructure be scalable enough to handle this new interconnected world?
In today's digital world, change is the one constant. Disruptive innovations like cloud, mobility, social media, and the Internet of Things have reshaped the market and set new standards in customer expectations. To remain competitive, businesses must tap the potential of emerging technologies and markets through the rapid release of new products and services. However, the rigid and siloed structures of traditional IT platforms and processes are slowing them down – resulting in lengthy delivery ...
SYS-CON Events announced today that IceWarp will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. IceWarp, the leader of cloud and on-premise messaging, delivers secured email, chat, documents, conferencing and collaboration to today's mobile workforce, all in one unified interface
In their Live Hack” presentation at 17th Cloud Expo, Stephen Coty and Paul Fletcher, Chief Security Evangelists at Alert Logic, will provide the audience with a chance to see a live demonstration of the common tools cyber attackers use to attack cloud and traditional IT systems. This “Live Hack” uses open source attack tools that are free and available for download by anybody. Attendees will learn where to find and how to operate these tools for the purpose of testing their own IT infrastructu...
Whether you like it or not, DevOps is on track for a remarkable alliance with security. The SEC didn’t approve the merger. And your boss hasn’t heard anything about it. Yet, this unruly triumvirate will soon dominate and deliver DevSecOps faster, cheaper, better, and on an unprecedented scale. In his session at DevOps Summit, Frank Bunger, VP of Customer Success at ScriptRock, will discuss how this cathartic moment will propel the DevOps movement from such stuff as dreams are made on to a prac...
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome,” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
SYS-CON Events announced today that G2G3 will exhibit at SYS-CON's @DevOpsSummit Silicon Valley, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Based on a collective appreciation for user experience, design, and technology, G2G3 is uniquely qualified and motivated to redefine how organizations and people engage in an increasingly digital world.
Consumer IoT applications provide data about the user that just doesn’t exist in traditional PC or mobile web applications. This rich data, or “context,” enables the highly personalized consumer experiences that characterize many consumer IoT apps. This same data is also providing brands with unprecedented insight into how their connected products are being used, while, at the same time, powering highly targeted engagement and marketing opportunities. In his session at @ThingsExpo, Nathan Trel...