Market Overview

Bank Card Default Rate Hits A Seven Month Low According To The S&P/Experian Consumer Credit Default Indices


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

NEW YORK, Oct. 18, 2016 /PRNewswire/ -- Data through September 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, showed a small decrease in national default rates during the month. The composite and first mortgage default rates both dropped one basis point from last month, reporting at 0.84% and 0.67%, respectively, in September. The auto loan default rate recorded a 1.05% rate, up four basis points from August. The bank card default rate hit a seven month low at 2.76%, down 10 basis points from last month.

Four of the five major cities saw their default rates decrease in the month of September. Miami had the largest decrease, reporting at 1.12%, down nine basis points from August. Chicago saw its default rate decrease by six basis points to 0.87% in September, and New York reported a decrease at 0.86%, down five basis points from the previous month. Los Angeles reported a default rate of 0.59%, down one basis point for the month. Dallas was the only city unchanged from last month at 0.74%.

"Data from the Federal Reserve shows that consumer credit outstanding continues to expand," says David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices. "After increasing by 7.2% in 2014 and 7.0% in 2015, growth this year is running at an annual rate of 6% to 7%. Despite the continued growth in total consumer credit extended and the currently very low interest rates, we are not seeing any deterioration in consumer credit defaults. Rather, the default rates for major categories and for the five cities highlighted in this report continue to drift down to the lowest figures seen in 12 years.

"Among the factors supporting the favorable trends in consumer credit defaults are the economy's underlying growth and continuing gains in employment, increases in personal income, and low inflation. A rare decline in mortgage debt outstanding and slower growth in consumer credit following the 2007-2009 recession contributed to improvements in consumers' financial condition which has been sustained in the last few years."

The table below summarizes the September 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


September 2016 
 Index Level

August 2016
Index Level

September 2015 
 Index Level





First Mortgage




Second Mortgage




Bank Card




Auto Loans




Source: S&P/Experian Consumer Credit Default Indices

Data through September 2016

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


Statistical Area

Index Level

August 2016
Index Level

 Index Level

New York












Los Angeles








Source: S&P/Experian Consumer Credit Default Indices

Data through September 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

John Piecuch
Head of Regional Communications
New York, USA
(+1) 212 438 1579

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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