S&P/Experian Consumer Credit Default Indices Show Fourth Straight Drop In Composite Rate In July 2021

Rhea-AI Summary

S&P Dow Jones Indices and Experian reported consumer credit default rates through July 2021, revealing a slight decline in the composite rate to 0.40%, marking the fourth consecutive decrease. The bank card default rate fell to 2.51%, while both the auto loan and first mortgage default rates saw minor increases. Notably, three out of five major metropolitan areas recorded lower default rates. The indices provide insights into loan performance across key categories, indicating a stabilizing trend in consumer credit health.

Positive

• Composite default rate decreased to 0.40%, indicating improving consumer credit conditions.
• Bank card default rate lowered significantly to 2.51%, reflecting better consumer payment behavior.
• Three major metropolitan areas showed reduced default rates compared to the prior month.

Negative

• Auto loan default rate increased by one basis point to 0.31%.
• First mortgage default rate rose by one basis point to 0.27%.

NEW YORK, Aug. 17, 2021 /PRNewswire/ -- S&P Dow Jones Indices and Experian released today data through July 2021 for the S&P/Experian Consumer Credit Default Indices. The indices represent a comprehensive measure of changes in consumer credit defaults and show that the composite rate declined one basis point to 0.40%. The bank card default rate fell 32 basis points to 2.51%. The auto loan default rate was up one basis point to 0.31% and the first mortgage default rate increased one basis point to 0.27%.

Three of the five major metropolitan statistical areas ("MSAs") showed lower default rates compared to last month. Dallas decreased two basis points to 0.40%, while New York and Los Angeles each dropped one basis point to 0.42% and 0.36%, respectively. Miami was nine basis points higher, at 0.51%, while Chiacago increased one basis point to 0.39%. 

The table below summarizes the July 2021 results for the S&P/Experian Consumer Credit Default Indices. These data are not seasonally adjusted and are not subject to revision.

Index Levels – National Indices
Index	July 2021	June 2021	July 2020
Composite	0.40	0.41	0.66
First Mortgage	0.27	0.26	0.44
Bank Card	2.51	2.83	3.86
Auto Loans	0.31	0.30	0.47
Source: S&P/Experian Consumer Credit Default Indices
Data through July 2021

The table below provides the index levels for the five major MSAs tracked by the S&P/Experian Consumer Credit Default Indices.

Index Levels – Major MSAs
MSA	July 2021	June 2021	July 2020
New York	0.42	0.43	0.86
Chicago	0.39	0.38	0.67
Dallas	0.40	0.42	0.61
Los Angeles	0.36	0.37	0.75
Miami	0.91	0.82	1.83
Source: S&P/Experian Consumer Credit Default Indices
Data through July 2021

For more information about S&P Dow Jones Indices, please visit www.spdji.com.

ABOUT THE S&P/EXPERIAN CONSUMER CREDIT DEFAULT INDICES

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.

For more information, please visit: www.spindices.com/indices/indicators/sp-experian-consumer-credit-default-composite-index.

ABOUT S&P DOW JONES INDICES

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 products based on indices from any other provider in the world. Since Charles Dow invented the first index in 1884, S&P DJI has been innovating and developing across the spectrum of asset classes helping to define 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 www.spdji.com.

ABOUT EXPERIAN

Experian is the world's leading global information services company. During life's big moments – from buying a home or a car, to sending a child to college, to growing a business by connecting with new customers – we empower consumers and our clients to manage their data with confidence. We help individuals to take financial control and access financial services, businesses to make smarter decisions and thrive, lenders to lend more responsibly, and organizations to prevent identity fraud and crime.

We have 17,800 people operating across 45 countries and every day we're investing in new technologies, talented people and innovation to help all our clients maximize every opportunity. We are listed on the London Stock Exchange (EXPN) and are a constituent of the FTSE 100 Index.

Learn more at www.experianplc.com or visit our global content hub at our global news blog for the latest news and insights from the Group.

FOR MORE INFORMATION:

Ray McConville
North America Communications  
New York, USA
(+1) 212 438 1678
raymond.mcconville@spglobal.com

Annie Russell
Experian Public Relations
(+1) 714 830 7927
annie.russell@experian.com

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SOURCE S&P Dow Jones Indices

FAQ

What are the July 2021 consumer credit default rates for EXPGY and SPGI?

The composite default rate for July 2021 is 0.40%, with a bank card default rate of 2.51%, an auto loan default rate of 0.31%, and a first mortgage default rate of 0.27%.

How did consumer credit defaults change in July 2021 compared to June 2021 for SPGI?

The composite rate decreased from 0.41% in June 2021 to 0.40% in July 2021.

Which metropolitan areas experienced lower default rates in July 2021?

Dallas, New York, and Los Angeles experienced lower default rates in July 2021.

What does the S&P/Experian Consumer Credit Default Indices measure?

The indices measure changes in consumer credit defaults across four key loan categories: auto loans, bank cards, and first mortgages.