The number of U.S. consumers who aren’t paying on their loans dropped a bit in…
The number of U.S. consumers who aren’t paying on their loans dropped a bit in April, according to new numbers from S&P Dow Jones Indices and Experian.
The companies released data through April 2019for 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 four basis from last month, to 0.88%. The bank card default rate rose 15 basis points to 3.83%.
The auto loan default rate was unchanged at 0.94%. The first mortgage default rate was five basis points lower at 0.65%.
Four of the major metropolitan statistical areas showed lower default rates compared to last month.
Miami showed the largest decrease, down 26 basis points to 1.32%.
The default rate for New York dropped eight basis points to 0.98%, while the rate for Dallas fell seven basis points to 0.87%. Los Angeles showed a default rate of 0.69%, down one basis point from last month.
Chicago was the only city with an increase, up one basis point to 0.96%.
This is good news, since when Americans pay on their loans, lenders are less nervous about extending credit. This keeps credit available to more people, at lower prices.