Bankcard default rate reaches new low despite overall default rate increase

The December release of the S&P/Experian Consumer Credit Default Indices, a comprehensive measure of changes in consumer credit defaults, showed the national composite* increased for the second consecutive month, reaching 1.64 percent in November. The first mortgage default rate also continued its increase, moving from 1.47 percent in October to 1.58 percent in November. All other loan types – auto loans, bankcard and second mortgage – posted decreases in their default rates in November.

A study released in October 2011 for the S&P/Experian Consumer Credit Default Indices showed that first mortgage default rates rose to 2.08 percent in October from September's 1.99 percent. Auto loans, second mortgages and bank cards all saw drops in their default rates. Looking at regions, Chicago saw the largest default rate increase, moving from 2.47 percent to 2.64 percent. Miami fell the most, to 4.16 percent, well below the near 19 percent default rate it had a little more than two years ago. Access previous issues of the S&P/Experian Consumer Credit Default Indices. Source: October 2011 S&P/Experian Consumer Credit Default Indices.