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

Rhea-AI Summary

On June 15, 2021, S&P Dow Jones Indices and Experian reported a decline in consumer credit defaults through May 2021. The composite default rate dropped to 0.44%, down six basis points from April. The bank card default rate decreased significantly by 22 basis points to 3.01%, while auto loan defaults fell to 0.34%, and first mortgage defaults to 0.33%. Major metropolitan areas also showed decreases, with New York experiencing the largest drop at 37 basis points to 0.46%.

Positive

• Composite default rate decreased to 0.44%, indicating improved credit conditions.
• Bank card default rate fell to 3.01%, reflecting better consumer credit management.
• Auto loan and first mortgage default rates decreased, suggesting stability in these sectors.
• All five major MSAs reported lower default rates, indicating widespread improvement.

Negative

• None.

NEW YORK, June 15, 2021 /PRNewswire/ -- S&P Dow Jones Indices and Experian released today data through May 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 was six basis points lower at 0.44%. The bank card default rate fell 22 basis points to 3.01%. The auto loan default rate was down nine basis points to 0.34% and the first mortgage default rate decreased five basis points to 0.33%.

All five major metropolitan statistical areas ("MSAs") showed lower default rates compared to last month. New York saw the largest drop, falling 37 basis points to 0.46%. Miami decreased 23 basis points to 0.81% while Los Angeles was down 10 basis points to 0.42%. Dallas and Chicago each dropped nine basis points, to 0.42% and 0.41% respectively.

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

National Indices
Index	May 2021 Index Level	April 2021 Index Level	May 2020 Index Level
Composite	0.44	0.50	0.78
First Mortgage	0.28	0.33	0.52
Bank Card	3.01	3.23	4.40
Auto Loans	0.34	0.43	0.56
Source: S&P/Experian Consumer Credit Default Indices
Data through May 2021

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

MSA	May 2021 Index Level	April 2021 Index Level	May 2020 Index Level
New York	0.46	0.83	0.83
Chicago	0.41	0.50	0.93
Dallas	0.42	0.51	0.79
Los Angeles	0.42	0.52	0.70
Miami	0.81	1.04	1.43
Source: S&P/Experian Consumer Credit Default Indices
Data through May 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 is the current consumer credit default rate according to S&P and Experian?

As of May 2021, the composite consumer credit default rate is 0.44%.

How much did the bank card default rate change in May 2021?

The bank card default rate decreased by 22 basis points to 3.01%.

What was the auto loan default rate in May 2021?

The auto loan default rate fell to 0.34% in May 2021.

Which major metropolitan area saw the largest drop in default rates?

New York saw the largest drop in default rates, falling 37 basis points to 0.46%.

When are the S&P/Experian Consumer Credit Default Indices published?

The indices are published on the third Tuesday of each month at 9:00 am ET.