Credit Cornerstone

Big expenditures are the most common reason for checking credit score

daniel.almasy — Sun, 19 May 2013 18:05:23 +0000

A recent survey that polled Americans on credit scores found that while nearly half of respondents (49 percent) check their credit scores at least once per year, the rest check once every two years or less, including a worrisome 22 percent who never check. The most common reasons for checking a credit score include purchasing a home (31 percent) or an automobile (32 percent).

Learn how you can provide the Experian Credit Educator^SM service to your customers.

Source: Press Release: Freecreditscore.com™ tells consumers, “Give yourself some credit”

Study analyzes profiles of consumers with high credit scores

daniel.almasy — Sun, 12 May 2013 17:48:27 +0000

VantageScore Solutions’ analysts recently examined how many accounts consumers with prime credit scores typically have in their credit file. Consumers who generally qualify for loans have an average of 13 loans in their credit files, and typically the oldest loan is more than 15 years old.

Source: The Score: How many credit accounts do you need to have a good credit score?

Hybrid buyers care for the environment and their credit

daniel.almasy — Sun, 05 May 2013 17:04:54 +0000

A recent analysis by Experian Automotive found that, overall, consumers purchasing a hybrid have significantly higher credit scores than those purchasing another type of new vehicle. The average credit score for a loan on a new hybrid was 790, compared with the national average credit score of 755 for a loan on any new vehicle.

Learn more on the profiles of hybrid owners.

Source: Experian press release: Hybrid vehicle market share grew by 41 percent in 2012

Group with lowest average balance shows greatest quarterly percentage increase

daniel.almasy — Sun, 28 Apr 2013 17:22:59 +0000

While VantageScore^® super-prime consumers carried the lowest average credit card balance of all credit tiers in Q4 2012 ($2,581), this group experienced the greatest average balance increase (6 percent) when compared with the previous quarter. All other credit tiers had little or no change to their average credit card balance.

Learn more and get an in-depth look at consumer credit trends from Q1 2013.

Source: IntelliView^SM powered by Experian-Oliver Wyman Market Intelligence Reports

Consumers are taking on longer automotive loans

daniel.almasy — Sun, 21 Apr 2013 17:55:38 +0000

Findings from Experian’s latest State of the Automotive Finance Market analysis showed the average loan term for a new vehicle jumped to an all-time high of 65 months in Q4 2012, up from 63 months in Q4 2011. More consumers also are opting for leases, with the lease share of new auto financing increasing to 24.79 percent, up from 10.45 percent in Q4 2011.

Download the complete Q4 Automotive Credit Trend Analysis.

Source: Historically High Loan Terms and Low Interest Rates Kept Monthly Auto Payments Down in Q4 2012

National credit default rates are in line with other economic trends

daniel.almasy — Sun, 14 Apr 2013 17:02:55 +0000

The most recent release of the S&P/Experian Consumer Credit Default Indices showed national credit default rates decreased in February. The national composite* moved from 1.63 percent in January to 1.55 percent in February. First mortgage and bankcard default rates followed a similar pattern. These trends are consistent with other economic news, such as improvements in employment and continuing gains in housing.

Download our recent Webinar and take an in-depth look at consumer credit trends in 2012.

Source: Press release: National Credit Default Rates Decreased in February 2013

*The national composite is the overall consumer default rate across all products.

New model expands the scoreable universe

daniel.almasy — Sun, 07 Apr 2013 16:22:06 +0000

Using a more inclusive scoring model such as the new VantageScore^® 3.0, lenders can score up to 30 million consumers who are labeled “unscoreable” by traditional models. Nearly 25 percent of these consumers are prime or near-prime credit quality.

Download our white paper Expanding the marketable universe.

Source: “How VantageScore 3.0 scores more people”

VantageScore^® is a registered trademark of VantageScore Solutions, LLC.

Consumers with HELOCs have the highest average credit score

daniel.almasy — Sun, 31 Mar 2013 15:36:41 +0000

While the overall average VantageScore^® for consumers in Q4 2012 was 748, the average score can vary greatly by specific loan product. For example, the average VantageScore for consumers with a home equity line of credit is 864, which is the highest average score for all products, reflecting tighter lending requirements. Student loans have the lowest average VantageScore of 695.

Learn how to stay ahead of consumer credit trends with IntelliView^SM, a Web-based data query, analysis and reporting tool.

Source: Experian—Oliver Wyman Market Intelligence Reports

VantageScore^® is a registered trademark of VantageScore Solutions, LLC.

Increase debit card usage to drive revenue

daniel.almasy — Sun, 24 Mar 2013 19:11:32 +0000

Spending on debit and prepaid cards in the United States topped $2 trillion in 2011, with 75 percent of this purchase volume being non-ATM transactions. The evolution of marketing knowledge and tactics for the U.S. debit card market can be applied to other countries migrating payment from cash to noncash transactions.

Download a copy of our most recent research paper for a retail banking road map to increase debit card usage, Applied U.S. debit card marketing tactics to the Russian Federation market.

Source: Nilson Report, “General Purpose Cards — U.S. 2011,” February 2012, Issue 988; Experian’s Global Consulting Practice

Small firms struggling to pay credit obligations

daniel.almasy — Sun, 17 Mar 2013 22:02:26 +0000

The Experian/Moody’s Analytics Small Business Credit Index tumbled in Q4 2012, falling 6.8 points to 97.3 from 104.1 in the previous quarter. This is the second consecutive quarterly decline and is the index’s lowest reading since Q3 2011. The drop in the index was driven primarily by a rise in delinquent balances as a slowdown in personal income growth pulled retail sales lower.

Download the complete report on small business credit

Source: Experian/Moody’s Analytics Small Business Credit Index Shows Small-Business Credit Conditions Deteriorate as Delinquency Rises and Personal Income Growth Slows