American consumers continue in the healthy buying mode after ratcheting up revolving credit by $39.1 billion or 5.7% year-on-year (YOY) in May. Total revolving credit for March preliminarily posted $901.0 billion, compared to a revised $899.4 billion for the prior month and $860.9 billion for the prior year.
American consumers are back in the buying mode after ratcheting up revolving credit by $4.3 billion or 5.9% year-on-year (YOY) in March. Total revolving credit for March preliminarily posted $889.4 billion, compared to a revised $885.1 billion for the prior month and $887.5 billion for January.
A payments platform for gold is now out of beta testing and really to launch globally except in the USA. Toronto-based BitGold has unveiled the BitGold platform, a software service connecting free vault storage with payment networks.
Total U.S. consumer debt hit $9.99 trillion in the first quarter, down 1.1% from Q1/14. While credit card debt remains robust, the slight year-on-year (YOY) decline is driven by a contraction in first and second mortgage debt.
As expected U.S. revolving consumer credit outstanding declined $3.7 billion or 5.0% year-on-year (YOY) in February as consumers cleared-off holiday debt. Total revolving credit for February preliminarily posted $884.8 billion, compared to a revised $888.5 billion for the prior month and $889.5 billion at end-of-year (EOY) 2014.
U.S. credit card outstandings for the four major networks rose 4.9% last year with American Express leading the charge with a 7.2% year-on-year (YOY) increase. U.S. card loans (including securitized receivables) hit $878.0 billion at end-of-year (EOY), according to CardData.
The partnership between American Express and Costco set to end early next year is expected to have negligible impact to existing credit card ratings of American Express Credit Account Master Trust securitized bonds.
Bank of Canada sent shock waves last night when it decided to cut overnight rates to 75 basis points (bps). This may have impact on Canadian credit card ABS.
VantageScore made available its consumer-facing white paper to explain how and why credit scores change often, how certain common credit-related activities impact credit scores, and how to improve one’s credit score. The “Assume the Role of Managing Your Credit Prudently and Watch Your Credit Score Improve” white paper includes easy-to-follow graphics demonstrating the impact on a credit score from such things as missed payments, a credit inquiry and closing a credit account. It also includes sample consumer profiles ranging from consumers with high credit scores, those with low credit scores and those in between, as well as ways each type of consumer can improve one’s scores both in the short- and long-term. VantageScore Solutions created these profiles so that consumers can have a directional guide that easily explains how certain activities might impact their own credit scores.
VantageScore Solutions credit scoring model has been named a “Preferred Partner” by the National Association of Federal Credit Unions (NAFCU) Services Corporation, making it the only credit score developer to receive such a distinction. It has been designated a key provider of services to credit unions to help support their growth and productivity and will be providing NAFCU members and other credit unions with critical resources including research-driven white papers, and will offer a wide variety of educational content related to credit scoring through webinars, webcasts, podcasts and other channels via a landing page on NAFCU’s website.
VantageScore Solutions announced that three white papers are now available that provide detailed performance results of VantageScore 2.0 within the mortgage, automotive and credit card lending industries. VantageScore 2.0 is able to capture both broad and recent behaviors as well as market conditions, making the algorithm less sensitive to volatility and predictive for a longer period of time. These characteristics contribute to the model’s performance results, which include a 7% increase in predictive accuracy in the real estate origination category when compared with a benchmark score; a 4% increase in predictive accuracy in the auto loan origination category when compared with a benchmark score; and a 4% increase in predictive accuracy in the credit card “existing account” category when compared with a benchmark score.
VantageScore Solutions and credit scoring model, announced the availability of a three-part white paper series that addresses and clarifies a number of issues regarding how credit scores are used by lenders. Available on VantageScore Solution’s refreshed website now addresses what a three-digit credit score actually means; How lenders use credit scores; and how to compare different credit score model ranges. The VantageScore credit scoring model is used by numerous lenders, making billions of decisions annually, including four of the top five financial institutions, the top five credit card issuers, two of the top five auto lenders, and one of the country’s largest mortgage lenders.