S&P/Experian Consumer Credit Default Indices Show Lower Bank Card And Composite Rates In October 2021

Rhea-AI Summary

S&P Dow Jones Indices and Experian announced the release of the S&P/Experian Consumer Credit Default Indices for October 2021. The composite default rate decreased to 0.38%, down one basis point from September. The bank card default rate fell to 2.01%, a decrease of ten basis points. Conversely, the auto loan default rate increased to 0.38%. The first mortgage default rate also improved, landing at 0.26%. Among major MSAs, Miami witnessed the largest decline in default rates, while Chicago and Dallas saw slight increases.

Positive

• Composite default rate decreased to 0.38%, down from 0.39% in September.
• Bank card default rate fell to 2.01%, down from 2.11%, indicating improved consumer credit health.
• First mortgage default rate improved to 0.26%, down from 0.27%, suggesting a stronger mortgage market.

Negative

• Auto loan default rate increased to 0.38%, up three basis points from September.
• Chicago's default rate rose to 0.45%, indicating potential regional credit concerns.
• Dallas default rate increased by seven basis points to 0.50%, signaling possible credit strain.

NEW YORK, Nov. 16, 2021 /PRNewswire/ -- S&P Dow Jones Indices and Experian released today data through October 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 fell one basis point to 0.38%. The bank card default rate dropped 10 basis points to 2.01%. The auto loan default rate was up three basis points to 0.38% and the first mortgage default rate was one basis point lower at 0.26%.

Three of the five major metropolitan statistical areas ("MSAs") showed lower default rates compared to last month. Miami had the largest decline, down seven basis points to 0.73%. New York fell four basis points to 0.36% while Los Angeles dropped one basis point to 0.30%. Chicago was two basis points higher at 0.45% while Dallas was up seven basis points to 0.50%.

The table below summarizes the October 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	October 2021	September 2021	October 2020
Composite	0.38	0.39	0.53
First Mortgage	0.26	0.27	0.35
Bank Card	2.01	2.11	2.80
Auto Loans	0.38	0.35	0.59
Source: S&P/Experian Consumer Credit Default Indices
Data through October 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	October 2021	September 2021	October 2020
New York	0.36	0.40	0.58
Chicago	0.45	0.43	0.58
Dallas	0.50	0.43	0.61
Los Angeles	0.30	0.31	0.53
Miami	0.73	0.80	1.13
Source: S&P/Experian Consumer Credit Default Indices
Data through October 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 latest S&P/Experian Consumer Credit Default Indices for October 2021?

The composite default rate is 0.38%, bank card rate is 2.01%, auto loan rate is 0.38%, and first mortgage rate is 0.26%.

Which metropolitan area showed the largest decline in default rates in October 2021?

Miami had the largest decline, dropping seven basis points to 0.73%.

How did New York's consumer credit default rate change in October 2021?

New York's default rate fell by four basis points to 0.36%.

What was the change in the bank card default rate from September to October 2021?

The bank card default rate decreased by ten basis points from 2.11% to 2.01%.

What trends were observed in the S&P/Experian Consumer Credit Default Indices for October 2021?

A decrease in composite and bank card default rates, while auto loan defaults increased.