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Roughly 70 percent of credit scores change by up to 20 points in any given 90-day window. Most consumers experience a score improvement rather than a score drop, with 56 percent of consumers shifting higher, 34 percent shifting lower and 10 percent staying the same.
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.
Bankcard originations have continued to increase, with Q3 2012 originations increasing 32 percent over Q3 2011. On average, 66 percent of the population now holds one or more bankcards. However, the percentage of consumers who have a bankcard varies greatly by VantageScore® tier:
To learn the status of Americans' current credit card spending, Credit.com recently compiled a list of the states with the highest average bankcard balance per consumer in the third quarter of 2012. While several Northeastern states dominated the list, Alaska took first place, with an average bankcard balance per consumer of $5,572. On the other end of the spectrum, North Dakota and Iowa had the lowest bankcard balances, at $3,595 and $3,624, respectively.
To learn the status of Americans' current credit card spending, Credit.com recently compiled a list of the states with the highest average bankcard balance per consumer in the third quarter of 2012. While several Northeastern states dominated the list, Alaska took first place, with an average bankcard balance per consumer of $5,572. On the other end of the spectrum, North Dakota and Iowa had the lowest bankcard balances, at $3,595 and $3,624, respectively.
Findings from Experian's latest State of the Automotive Finance Market analysis showed market share for nonprime, subprime and deep subprime automotive loans for new vehicles grew by 13.6 percent and new vehicle leasing increased by 7.53 percent year over year in Q3 2012. Thirty-day delinquencies fell slightly from 2.78 percent in Q3 2011 to 2.67 percent in Q3 2012 and 60 day delinquencies fell from 0.71 percent in Q3 2011 to 0.69 percent in Q3 2012.
The November release of the S&P/Experian Consumer Credit Default Indices, a comprehensive measure of changes in consumer credit defaults, showed that most loan types saw an increase in default rates in October. After nine consecutive months of declining default rates, the national composite1 increased to 1.55 percent in October from the 1.46 percent September rate. The first mortgage default rate increased from 1.36 percent in September to 1.47 percent in October. Bankcard default rates posted the lowest post recession rate in October (3.68 percent), compared with 3.70 percent in September.
Returns on investment from superior customer-centric strategies easily can exceed 20 percent in the first year of implementation. However, this number is compounded exponentially in subsequent years due to repeat business, new customer referrals and customer loyalty. Learn more about the design and deployment of holistic retail bank customer-centric strategies that synthesize critical information and qualitative banker insights. Source: Implementing differentiated customer-centric strategies: Retail-banker-friendly strategy development that resonates with your customers and shareholders, an Experian white paper.
Six states are the top producers of turkeys: Minnesota at 46 million, North Carolina at 36 million, Arkansas at 29 million, Missouri at 17.5 million, Virginia at 17 million and Indiana at 16.5 million. This accounts for nearly two-thirds of turkeys produced in the United States as of September 2012. The average wholesale price for frozen whole turkey during fourth-quarter 2012 is projected to range from $1.10 to $1.14 per pound -- similar to the 2011 fourth-quarter average price of $1.11 per pound. The average retail price for whole frozen turkeys in September 2012 was $1.62, about 6 cents lower than the average retail price for whole frozen turkeys in September 2011. Source: National Agricultural Statistics Service (NASS), Agricultural Statistics Board and United States Department of Agriculture (USDA).
According to a recent Ponemon Institute study, 44 percent of consumers who were notified about a data breach believed the breached company was hiding something. When data breaches occur, it is extremely important to be there for customers and to address their concerns. When companies hide a data breach, impacted consumers begin to suspect the breach is actually much worse than the company claims, and trust in the organization begins to wane. Find out more by downloading the data breach case study of lessons learned from the field.
When validating a model in the presence of overlay criteria, it is important to remember that any metrics computed at the aggregate portfolio level will not be indicative of the model's true performance. While traditional validation methodologies and portfolio metrics may provide directional insight into model performance, the overlay strategy is an additional variable that must be accounted for in each step of the validation analysis. An effective validation should include: Establishment of an appropriate base line Piece-wise validation of overlay segments An overlay strategy analysis Do you have model validation questions? Learn more and transform your business goals with Experian's Analytical Consulting Services. Source: VantageScore® Solutions LLC white paper: Validating a Credit Score Model in Conjunction with Additional Underwriting Criteria. VantageScore® is owned by VantageScore Solutions, LLC.
As of Q2 2012, subprime borrowers are carrying the largest retail card balances, with an average card balance per account of $620 and $700 for VantageScore® credit score D and F tiers, respectively. The national average balance on a retail account is $329 — an increase of 39 percent over 2011. VantageScore® credit score A tier (super-prime) consumers carry the lowest average balance at $99 per account. Source: Experian-Oliver Wyman Market Intelligence Reports. VantageScore® is owned by VantageScore Solutions, LLC.
Returns on investment from superior customer-centric strategies easily can exceed 20 percent in the first year of implementation. However, this number is compounded exponentially in subsequent years due to repeat business, new customer referrals and customer loyalty. Learn more about the design and deployment of holistic retail bank customer-centric strategies that synthesize critical information and qualitative banker insights. Source: Implementing differentiated customer-centric strategies: Retail-banker-friendly strategy development that resonates with your customers and shareholders, an Experian white paper.
During Q2 of 2012, home equity line of credit (HELOC) delinquency rates were the lowest in recent years. The delinquency rate fell below 1 percent for all performance categories: 30 to 59 days past due (DPD) fell to 0.88 percent; 60 to 89 DPD was at 0.42 percent and 90 to 180 DPD was at 0.99 percent. Source: Experian-Oliver Wyman Market Intelligence Reports.
Not surprisingly, bankcard utilization is the highest among subprime consumers with VantageScore D and F tiers having average bankcard utilization rates of 68% and 81% respectively. In comparison, VantageScore A tier (super prime) consumers had an average bankcard utilization rate of 6% and VantageScore B tier (prime) consumers had an average bankcard utilization rate of 15%. Join our panel of experts on October 23 to hear from industry experts on key regulations that are changing the way banks need to conduct business in order to grow and stay profitable. Source: Experian Oliver Wyman Market Intelligence Reports.