Despite the latest data showing a 7.8% explosion in consumer charge-ups, charge-offs continued improving. For the fourth straight month, charge-offs fell in May, this time to 5.17% as losses recorded a decrease of 34% from the year ago period. This compares to the April figures of 5.18% and the year ago figure of 7.42. As…
Of the total $2.54 trillion in outstanding US consumer debt-up a jaw-dropping 10.2% since February- total outstanding revolving credit was up 7.8% in March for a steep jump from $798.5 billion in February to $803.6 billion. This compares to the year ago figure of 790.6 and comes as unemployment improved marginally from 8.2% to 8.1%…
Of the total $2.54 trillion in outstanding US consumer debt-up a jaw-dropping 10.2% since February- total outstanding revolving credit was up 7.8% in March for a steep jump from $798.5 billion in February to $803.6 billion. This compares to the year ago figure of 790.6. Revolving consumer credit plummeted from its peak of $973.6 billion…
The national credit card delinquency rate of bankcard borrowers 90 days or more delinquent on at least one credit card decreased to 0.92% in 2Q/10, down 17.1% over the previous quarter and down 21.3% over the year ago period. Over the past two years, the closest the delinquency rate has been nearest this figure was in 2Q/08 when it was 1.04%. Credit card delinquency was still highest in Nevada at 1.50%, although its down from the last quarter figure of 1.79%, when the State still led the nation. Nevada is followed by Florida (1.24%) and Arizona (1.11%). The lowest credit card delinquency rates were found in North Dakota (0.54%), South Dakota (0.55%) and the District of Columbia (0.61%). These findings, according to Transunion research, reflects only Alaska showed an increase in credit card delinquency, up 7.4%, while the largest quarter-over-quarter drop in delinquency was found in the District of Columbia, down -28.2%, and Delaware, down -23%. Additional findings show average credit card borrower debt was down since the previous quarter by 4.1% to $4,951 from $5,165. This is down 13.4% from the year ago figure of $5,719 and is lowest average national balance in 8 years.
90+ DAYS DELINQUENCY
1Q/08: 1.19%
2Q/08: 1.04%
3Q/08: 1.09%
4Q/08: 1.21%
1Q/09: 1.32%
2Q/09: 1.17%
3Q/09: 1.22%
4Q/09: 1.21%
1Q/10: 1.11%
2Q/10: 0.92%
Source: TransUnion Trend Data
Wells Fargo & Company has expanded its “Cash Back Card” program to give eligible customers the ability to pay
down their home equity principal, automatically apply cash rewards to their eligible Wells Fargo checking
and savings accounts, pay down their personal lines and loans or request cash rewards.
Customers can also pay down their Wells Fargo Home Mortgage with the Wells Fargo Home Rebate Card.
Since 2007, when the company introduced its “Wells Fargo Home Rebate Card”, a special
credit card only for its mortgage customers, nearly $10.5 million has
been applied to the principal on Wells Fargo Home Mortgage loans.
Virtually every purchase (minus returns/credits) customers make with
their “Wells Fargo Cash Back Card” or “Wells Fargo Home Rebate Card”
counts toward a 1% rebate. The rebate is applied automatically to
the selected account in $25 increments, and there is no cap on the
amount of rebate customers can earn.
Wells Fargo has rolled-out three new programs to assist consumers with
debt reduction and savings. The products include: “Debt Pay Down
Solution,” “Cash Back Cards,” and “Smarter Credit.” The “Debt Pay Down
Solution” enables customers to consolidate high-interest debt and lower
monthly payments through a Wells Fargo personal loan. Customers use the
new Wells Fargo “My Spending Report with Budget Watch” to find
opportunities each month to spend less and then transfer the extra money
to the principal of the new loan. The “Cash Back Card” and the new “Cash
Back College Card” offers a full 1% in cash back. Once customers have
earned $25, they can apply the reward toward a personal loan or line of
credit or to decrease their card balances, add the cash to their
savings/checking accounts or get it in a check. Customers also can add
their “Check Cards” to the “Cash Back” program at no cost to earn 0.25%
on their signature debit card purchases. The “Smarter Credit” program
assists customers to establish or rebuild credit, including information
on how to order free credit reports and learn money skills for life
through Wells Fargoâs “Hands on Banking/El futuro en tus manos” program.
Highlighted throughout is “3 Steps to Smarter Credit Choices.”
Discover Card has been ranked number 1 in customer loyalty according to the latest Brand Keys Customer Loyalty Engagement Index. Discover Card has won the credit card category in the index 11 years in a row. They ranked ahead of Capital One, VISA, American Express and MasterCard. Brand Keys identifies the four most important drivers of brand loyalty in the credit card category as Rewards and Services; Fees and Flexibility; Ease and Speed of Interactions; and Protection and Precision.
A new survey shows that 61% of Americans carry non-mortgage debt. The poll by Bankrate found that while 91% believe debt can be controlled by disciplined saving and spending, 72% also believe that debt is a part of modern life and difficult to avoid. About 75% of those with annual incomes of at least $75,000 regularly carry debt month-to month as opposed to only 36% of those with annual incomes under $20,000. Bankrate says men worry less than women about the debt they carry (40% vs. 30%) The national random-digit-dialed phone study of 1,014 adults 18 or older was conducted for Bankrate by GfK Roper Public Affairs & Media.
Americans knocked-off $1.6 billion in revolving credit, mostly credit card debt, during November, marking the first contraction for 2002. The most recent pay-down in revolving credit occurred in 2001 in the wake of the recession and 9/11. In November 2001, Americans added $11.6 billion to revolving credit, a typical pattern for the beginning of the holiday shopping season. However, “Black Friday 2002,” the day after Thanksgiving, came on the next to the last day of November. It is expected the normal November surge will be reflected in the December 2002 data to be released in early February by the Federal Reserve. Between November 2001 and November 2002, revolving credit has grown 3.5%. Bank credit card debt at the end of the third quarter was $632.7 billion or roughly 87% of total revolving credit, according to CardData ([www.carddata.com][1]). According to the government figures released yesterday, American consumers were $1.721 trillion in debt, exclusive of home mortgages during November. Overall, consumer credit declined 1.5%, the first such decline in overall consumer credit in five years.
REVOLVING CREDIT HISTORICAL
($billions)
Nov 02 Oct 02 Sep 02 Aug 02 Jul 02 Jun 02 May 02
GRWTH: -2.6% 4.0 3.0 6.2 8.9 6.0 4.1
$OWED: $722.1 723.7 721.3 719.5 717.4 715.6 712.1
Apr02 Mar 02 Feb 02 Jan 02 Dec 01 Nov 01 Oct 01
GRWTH: 8.0% 4.8 2.2 1.8 -9.7 12.7 -7.1
$OWED: $708.7 705.4 705.0 702.4 692.4 698.0 686.4
Source: Federal Reserve; revised figures as of 01/08/03; For complete
historical data visit CardData (www.carddata.com).
[1]: http://www.carddata.com
American use of consumer credit continues to gather steam as data for August shows a remarkable increase in the rate of growth compared to one year ago. During August of this year, consumers added nearly $4 billion to revolving credit compared to a pay-down of more than $4.5 billion during August 2001. According to figures released Monday afternoon by the Federal Reserve, revolving credit is growing at an annual rate 6.5% compared to -2.2% one year ago. Since the first of this year consumer revolving credit has grown by $33.5 billion. Bank credit card debt at mid-year was $611.4 billion according to CardData (www.carddata.com). Bank credit card outstandings at mid-year were growing at an annual rate of 7.8% while overall revolving credit was growing at an annual rate of 2.9% in August. According to the government figures released yesterday, American consumers were $1.730 trillion in debt, exclusive of home mortgages during August. The FRB also reported that average interest rates for all credit card accounts now stands at 13.37% and 13.26% for accounts assessed interest. Rates for 48-month new car loans stands at 5.95% while rates for a 24-month personal loan average 11.28%.
REVOLVING CREDIT HISTORICAL
($billions)
Aug 02 Jul 02 Jun 02 May 02 Apr 02 Mar 02 Feb 02
GRWTH: 6.5% 10.6 6.0 4.1 8.0 4.8 2.2
$OWED: $725.9 722.0 715.6 712.1 708.7 705.4 705.0
Jan 02 Dec 01 Nov 01 Oct 01 Sep 01 Aug 01 Jul 01
GRWTH: 1.8% -9.7 12.7 -7.1 0.6 -2.2 -3.7
$OWED: $702.4 692.4 698.0 686.4 692.7 693.5 698.1
Source: Federal Reserve; revised figures as of 10/07/02; For complete
historical data visit CardData (www.carddata.com).