Consumer debit ratios for the second-quarter plummeted to levels not seen in more than 40 years. The Financial Obligations Ration (FOR) dropped 53 basis points (bps) over the past two years, while the Debt Service Ratio (DSR) has declined 27 bps since the second-quarter of 2017, based on figures released by the Federal Reserve. The…
U.S. consumer credit card debt (revolving) for August, mostly credit card debt (95%), remained above the $1 trillion level for the sixth consecutive quarter. The year-on-year (YOY) change edged slightly upward in August. Consumer revolving credit increased at an 5.6% annual rate of growth in August, compared to a revised 1.6% annual rate in July…
U.S. consumer revolving debt for July, mostly credit card debt (95%), remained above the $1 trillion level for the fifth consecutive quarter. The year-on-year (YOY) change edged slightly upward in July. Consumer revolving credit increased at an 1.5% annual rate of growth in July, compared to a revised -1.4% annual rate in June and a…
U.K. consumer credit growth continued its downward spiral in July, dropping to 8.5% year-on-year (YOY), its lowest level this year and well below the peak of 10.8% YOY set in November 2016. For July, driven by the Brexit fallout, the decline was 50 basis points (bps) sequentially, and flat YOY. However, according to the July…
Australian credit card gross dollar volume (GDV) jumped 8.8% year-on-year (YOY) in March. Purchase dollar volume (PDV) increased 7.9% YOY and cash dollar volume (CDV) dipped by 5.1% YOY in March, according to CardData. There had been growing concerns in 2016 credit card spending was slowing down, but the tide is reversing in early 2017.…
According to a new national survey, three quarters of consumers indicate they would be likely to select an online retailer that offered instant financing compared to another that did not; 28% would be very likely to change merchants in order to use instant financing. Instant financing is an easy-to-use, revolving line of credit that consumers…
The number of new credit card accounts (those opened in the previous 24 months) rose to 88.1 million, driven in part by a 16% increase in new subprime accounts. Even with this increase, subprime accounts continue to comprise roughly one-fifth of total open accounts — equivalent to 2012 levels. According to the American Bankers Association’s…
Russia’s Sovcombank is using survey-based credit scoring from FICO to attract young people looking for their first credit card. The new score uses psychometrics and behavioral data to measure a person’s credit risk based on their answers to questions in an online assessment Russia’s Sovcombank is using the new form of credit scoring developed by…
The best credit card enhancement to come down the pike since rewards programs is furnishing updated credit scores to cardholders. FICO® reports its Score Open Access program has topped 200 million credit accounts in the U.S. The program enables over 100 financial institutions to provide FICO® Scores, for free, to existing customers. More than a…
Australian credit card outstandings rose by 1.2% year-on-year (YOY) in January. Credit card credit limits increased 1.4% YOY and the number of credit card accounts rose 1.6% YOY in January. The average balance per account in January declined 0.4% YOY to AU$3084, compared to AU$3164 for December, and AU$3096 for January 2016. Credit card outstandings…
U.K. consumer credit took a turn south in December signaling a difficult 2017 in the anticipation of the Brexit/Trump turbulence, and coming of the heels of the holiday spending binge. After rising 190 basis points (bps) year-on-year (YOY) in 2016, the YOY rise declined 20 bps in December, according to CardData. In December total consumer…
Consumer credit defaults rose two basis points from last month at 0.89% in December. The bank card default rate recorded a 2.95% rate, up 14 basis points from November. Auto loan defaults came in at 1.03%, up three basis points from the previous month. The first mortgage default rate came in at 0.71%, up one…