The bank card default rate increased 16 basis points (bps) in November from the previous month, to 2.91%. For all consumer credit the composite ratio was 0.97% in November, up three bps from the previous month.
According to the S&P/Experian Consumer Credit Default Indices, the auto loan default rate was 1.04%, up four basis points for November. The first mortgage default reported in at 0.82%, up one basis point from the previous month.
According to CardData charge-offs among the nation’s top four U.S. issuers dropped 15 basis points (bps) year-on-year (YOY) to 2.68%, and down 20 bps sequentially for the third quarter.
According to the Federal Reserve, the charge-off rate (seasonally adjusted) for the top 100 U.S. banks increased to 2.90% in the third quarter, compared to 2.85% in the prior quarter, and 3.03% in the year ago quarter.
S&P/Experian also notes three of the five major cities saw their default rates increase during the month of November. Miami reported a 1.48% default rate, up 19 basis points from October. Dallas reported a 0.88% default rate in November, up 13 basis points. Los Angeles recorded a 0.74% default rate, up two basis points from October. New York reported a 0.95% default rate for November, the same rate as the previous month. Chicago was the only city to report a decrease in the default rate this month at 1.03%, down four basis points from the prior month.
NOTE: Default is defined as 90 days past due or worse for auto loans, first and second mortgages, and 180 days past due or worse for bankcards. In addition, bankruptcy repossession, and a write-off also constitute a default.
For data, background and forecasts on the Bank Card Defaults: Search CardWeb.com’s CardFlash® Library of more than 58,000 archived articles; Access CardWeb.com’s CardData® for current and historical Performance, Portfolios, Profiles, etc. Visit RAM Research® (ramresearch.com) for quarterly and annual forecasts covering more than 150 payments metrics. [complimentary or deeply discounted access to CardWeb.com subscribers].
Additional database resources include CardWeb.com’s CardExecs® – comings & goings of payments movers & shakers; CardWeb.com’s CardWatch® – ears & eyes on marketing globally (57K items); and CardWeb.com’s CardPixes® – form & function of card design (7K items).