Trends in Credit Card and Mortgage Delinquencies

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Experian Report Shows Credit Card Delinquencies are Below Prerecession Levels; Mortgage Delinquencies are Increasing

Study finds that Cleveland residents are improving bankcard payments, while Portland residents continue to make mortgage payments late.

Costa Mesa, Calif., Aug. 12, 2011 — Experian®, the leading global information services company, released its findings today on the credit card and mortgage payment behaviors* of consumers both nationally and in the top 30 Metropolitan Statistical Areas (MSAs). Nationally, since 2007, 20 percent fewer credit card payments are 60 days late, but 25 percent more consumers are paying their mortgage 60 days late.

The cities that showed the most improvements to bankcard payments include Cleveland, Ohio; San Antonio, Texas; Cincinnati, Ohio; Dallas, Texas; and Houston, Texas. Cities that have made the least improvements to their credit card payments include Riverside, Calif.; Seattle, Wash.; Tampa, Fla.; Phoenix, Ariz.; and Miami, Fla. Additionally, the data shows only four cities that improved in making mortgage payments: Cleveland, Ohio; Minneapolis, Minn.; Denver, Colo.; and Detroit, Mich.

The charts below show the percentage of change from 2007 through 2011. The first chart below ranks the top 30 cities from the most improved bankcard payments to the least improved and the second chart represents the percentage of change in late mortgage payments.

 MSA Percentage change in
improved bankcard payments
(best to worst)
 1. Cleveland  34.7%
 2. San Antonio  30.5%
 3. Cincinnati  30.0%
 4. Dallas  28.8%
 5. Houston  28.6%
 6. Boston  27.7%
 7. Detroit  26.7%
 8. Sacramento  25.4%
 9. Philadelphia  24.9%
 10. St. Louis  23.8%
 11. Kansas City  23.2%
 12. Pittsburgh  23.1%
 13. San Francisco  22.3%
 14. Atlanta  21.8%
 15. Baltimore  20.9%
 16. Denver  20.4%
 17. Minneapolis  19.7%
 18. Los Angeles  19.1%
 19. New York  18.2%
 20. Washington DC  16.8%
 21. Portland  15.7%
 22. San Diego  15.3%
 23. Chicago  15.1%
 24. Orlando  13.3%
 25. Las Vegas  12.7%
 26. Riverside  9.4%
 27. Seattle  8.0%
 28. Tampa  5.3%
 29. Phoenix  2.4%
 30. Miami  1.4%

 

 MSA Percentage change in
missed mortgage payments
(worst to best)
 1. Portland  99.9%
 2. Phoenix  78.4%
 3. Baltimore  66.8%
 4. Seattle  65.1%
 5. New York  49.4%
 6. Philadelphia  48.0%
 7. Orlando  44.3%
 8. San Francisco  43.0%
 9. Los Angeles  36.3%
 10. Chicago  31.2%
 11. Washington DC  31.1%
 12. Tampa  30.9%
 13. Riverside  29.7%
 14. Las Vegas  29.5%
 15. Atlanta  23.5%
 16. San Antonio  21.4%
 17. Miami  21.2%
 18. Kansas City  19.2%
 19. Boston  16.5%
 20. Pittsburgh  16.3%
 21. Houston  16.1%
 22. San Diego  11.1%
 23. Dallas  10.8%
 24. Sacramento  8.9%
 25. Cincinatti  3.0%
 26. St. Louis  1.0%
 27. Cleveland  -3.8%
 28. Minneapolis  -5.9%
 29. Denver  -7.4%
 30. Detroit  -17.1%

“In  looking at the numbers, we’re seeing that even in the cities at the bottom of the list, consumers are meeting their bankcard payment obligations better than before the recession,” said Michele Raneri, vice president of analytics, Experian. “While the Experian data shows an overall improvement to these 60 day delinquencies, as much as a 30 percent improvement is seen in the key Texas cities, which is a positive sign in what has been a slow economic recovery.” 

 

The following charts provide a view into the bankcard and mortgage change patterns since Q1 2006 through Q2 2011:

 

While the trend is positive on the bankcard side, the mortgage side is continuing to suffer in most of the markets. Delinquent payments and collections can have a major negative impact on a credit score and a consumer’s ability to obtain credit. Below are some tips for consumers to consider regarding payment behavior:

  • Make sure your payments are current, and do not let them be late again. The longer your history of on-time payments, the less impact the delinquencies will have on your creditworthiness.
  • If you miss a payment on an individual account, that payment may impact your ability to open joint accounts because both credit histories will be considered.
  • © 2014 Experian Information Solutions, Inc. All rights reserved.