Defaults hit post-recession lows

Posted on Aug 01 2013 by

The June release of the S&P/Experian Consumer Credit Default Indices showed default rates continued to fall across all categories. The national composite* and the first mortgage default rate both hit new post-recession lows (1.34 percent and 1.23 percent, respectively). The table below summarizes the June 2013 results for the S&P/Experian Consumer Credit Default Indices.

Alaskans use more of their available credit than any other state

Posted on Jul 21 2013 by

Using data from IntelliViewSM, Credit.com recently compiled a list of states with the highest average bankcard utilization rates. Alaska took first place, with an average utilization ratio of 27.73 percent. This should come as no surprise since Alaska has recently topped lists for highest credit card balances and highest revolving debt.

Fraud prevention is key to improving eligibility verification

Posted on Jul 14 2013 by

A recent survey of government benefit agencies shows an increased need for fraud detection technology to prevent eligibility fraud. Only 26 percent of respondents currently use fraud detection technology, and 57 percent cite false income reporting as the leading cause of fraud. Insufficient resources and difficulty integrating multiple data sources were the greatest challenges in preventing eligibility fraud.

Credit quality improves markedly in the first quarter

Posted on Jul 07 2013 by

Small-business credit conditions improved in Q1 2013, reversing much of the deterioration seen during Q4 2012. The Q1 rise was fueled primarily by falling delinquency rates in every segment compared with a year earlier. The total share of delinquent dollars was 11.2 percent for Q1 2013 – 1.4 percentage points lower than a year ago.

Originations are up while delinquency levels reach near-record lows

Posted on Jun 23 2013 by

A recent Experian credit trends analysis of new mortgages and bankcards from Q1 2013 shows a 16 percent year-over-year increase in mortgage origination volume and a 20 percent increase in bankcard limits. Providing further evidence of continued economic recovery throughout the nation, mortgage delinquency rates reached multi-year lows and bankcard delinquency rates reached near-record lows.

Strategic defaulters not likely to obtain a mortgage in the near future

Posted on Jun 16 2013 by

Despite the improving real-estate market, financial institutions are concerned about lending to consumers who have pursued strategic defaults. In a recent VantageScore Solutions survey, 85 percent of respondents believe that consumers who have pursued strategic defaults pose increased risk, even if they meet the institution’s other lending criteria. More than half of those surveyed said […]

Study finds notable differences in credit characteristics of men and women

Posted on Jun 09 2013 by

A recent study comparing financial differences between men and women found that, overall, women are better at managing money and debt. Differences between the two populations include:

Small business loans – a new lending landscape

Posted on Jun 03 2013 by

Financial institutions are revisiting their policies and thresholds for lending to small businesses and are slowly loosening restrictions. In a recent survey by the Federal Reserve Board, 9.2 percent of senior loan officers said they have “somewhat” eased their standards for lending to small firms and provided commercial borrowers more leeway, in the form of slightly bigger credit lines and longer maturity terms.

Mortgage originations continue to increase

Posted on May 26 2013 by

Providing more evidence of a housing recovery, Q1 2013 mortgage originations increased 16 percent year over year to $471 billion. The Midwest region delivered the strongest annual gain, with a 29 percent increase over the previous year.

Big expenditures are the most common reason for checking credit score

Posted on May 19 2013 by

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).