Market Overview

Consumer Credit Bank Card Defaults Drop, Overall Numbers Steady According To The S&P/Experian Consumer Credit Default Indices


Four of the Five Cities Report Default Rate Decreases in July 2016

NEW YORK, Aug. 16, 2016 /PRNewswire/ -- Data through July 2016, released today by S&P Dow Jones Indices and Experian for the S&P/Experian Consumer Credit Default Indices, a comprehensive measure of changes in consumer credit defaults, shows a composite rate of 0.83% in July, up one basis point from the previous month. The first mortgage default rate reported was 0.66% in July, up one basis point from the prior month. Auto loan defaults recorded a 0.93% default rate, up two basis points from June. The bank card default rate came in at 2.92% down 19 basis points from last month.

Four of the five major cities saw their overall default rates decrease during the month of July. Chicago recorded a default rate of 0.89%, down 12 basis points for the month. New York reported a default rate of 0.77%, down six basis points from June. Dallas's default rate decreased five basis points from the prior month, posting a default rate of 0.69%. Los Angeles reported a default rate of 0.63%, down four basis points for July. Miami's default rate increased for the fifth consecutive month, up six basis points with a default rate of 1.37%.

"Consumer credit default rates remain close to 12 year lows amidst moderate growth in spending and incomes," says David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices. "The consumer economy is growing with few significant difficulties in accessing credit. Personal incomes rose 2.7% in the last year and retail sales, excluding autos, were up 2.3% in the year to July. Employment is increasing, median wage growth, as reported by the Atlanta Federal Reserve Bank, is 3.6% at annual rates, and consumer sentiment continues at high levels. Consumers' use of debt has expanded with both consumer credit and mortgage debt balances rising.

"This being an election year, and one when there will definitely be a new president next January, the economy faces more than the usual uncertainties. With the electoral outcome unknown and large differences between the candidates' policy proposals, one should expect these uncertainties to cause some delays in business investments or consumer spending on big ticket items. Delays in spending are likely to limit the growth in consumer and corporate debt, avoiding substantial increases in default rates in the near term."

The table below summarizes the July 2016 results for the S&P/Experian Credit Default Indices. These data are not seasonally adjusted and are not subject to revision.

S&P/Experian Consumer Credit Default Indices

National Indices


July 2016 
 Index Level

June 2016 
 Index Level

July 2015 
 Index Level





First Mortgage




Second Mortgage




Bank Card




Auto Loans




Source: S&P/Experian Consumer Credit Default Indices

Data through July 2016

The table below provides the S&P/Experian Consumer Default Composite Indices for the five MSAs:

Metropolitan Statistical Area

July 2016 
Index Level

June 2016 
Index Level

July 2015 
Index Level

New York












Los Angeles








Source: S&P/Experian Consumer Credit Default Indices

Data through July 2016

For more information about S&P Dow Jones Indices, please visit

S&P Dow Jones Indices is the largest global resource for essential index-based concepts, data and research, and home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average®. More assets are invested in products based on our indices than based on any other provider in the world. With over 1,000,000 indices and more than 120 years of experience constructing innovative and transparent solutions, S&P Dow Jones Indices defines the way investors measure and trade the markets.

S&P Dow Jones Indices is a division of S&P Global (NYSE: SPGI), which provides essential intelligence for individuals, companies, and governments to make decisions with confidence. For more information, visit

About Experian
We are the leading global information services company, providing data and analytical tools to our clients around the world. We help businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. We also help people to check their credit report and credit score and protect against identity theft. In 2015, we were named   one of the "World's Most Innovative Companies" by Forbes magazine.

We employ approximately 17,000 people in 37 countries and our corporate headquarters are in Dublin, Ireland, with operational headquarters in Nottingham, UK; California, US; and São Paulo, Brazil.

Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. Total revenue for the year ended March 31, 2016, was US$4.6 billion.

To find out more about our company, please visit or watch our documentary, "Inside Experian."

Experian and the Experian marks used herein are trademarks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein are the property of their respective owners.


David Blitzer
Managing Director and Chairman of Index Committee
New York, USA
(+1) 212 438 3907

Soogyung Jordan
Global Head of Communications 
New York, USA
(+1) 212 438 2297 

Matt Tatham
Experian Public Relations
917 446 7227

Jointly developed by S&P Dow Jones Indices LLC and Experian, the S&P/Experian Consumer Credit Default Indices are published on the third Tuesday of each month at 9:00 am ET. They are constructed to track the default experience of consumer balances in four key loan categories: auto, bankcard, first mortgage lien and second mortgage lien. The Indices are calculated based on data extracted from Experian's consumer credit database. This database is populated with individual consumer loan and payment data submitted by lenders to Experian every month. Experian's base of data contributors includes leading banks and mortgage companies, and covers approximately $11 trillion in outstanding loans sourced from 11,500 lenders.

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SOURCE S&P Dow Jones Indices

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