Tag: consumer credit
Download our case study to learn how home equity lender, Spring EQ, leveraged Experian Boost to help applicants qualify for better loan rates and terms.
Learn the benefits of leveraging alternative credit data to better assess risk at the onset of the loan decisioning process. Read more.
At Experian, we are here to help consumers understand how the credit reporting system and personal finance overall will move forward during the pandemic.
We are excited to announce that Experian has been selected as a Fintech Breakthrough Awards winner in the Consumer Lending Innovation category.
As customer service shifts to digital channels, consumer-finance companies can engage customers and add value to the user experience.
Experian's annual State of Credit Report includes consumer credit data trends and a 10 year look back to when America started to enter the recession.
Day 2 of the annual conference covered topics ranging from alternative credit data and regulatory compliance to marketing analytics and fraud.
We’ve rounded up what it takes for consumers to have a good credit score, in addition to some alternative considerations. Read more!
As Gen Z enters the economy, they bring with them an entirely new set of priorities when it comes to their finances. Move over Millennials.
With credit card openings and usage increasing, now is the time to make sure your financial institution is optimizing its credit card portfolio.
According to our State of Alternative Credit Data research, more lenders are using alternative credit data to determine if a consumer is a good or bad risk
Trended attributes and consumer lending Digging deeper into consumer credit data can help provide new insights into trending behavior, providing more than just point-in-time credit evaluation. The information derived through trended attributes can help you understand your customers’: Payment rates and account migration behavior. Slope of balance changes. Delinquency patterns over time. Today’s consumer lending environment is more dynamic and competitive than ever. Trended attributes can give additional lift in your segmentation strategies and custom models and provides a high-definition lens that opens a world of opportunity. Learn more
In 2017, a meaningful jump in consumer sentiment bolstered spending, and caused the spread between disposable personal income and consumer spending to reach an all-time high. This increase in spread was mostly financed through consumer debt, which according to the Federal Reserve Bank of New York has brought total consumer debt to a new peak of $12.8 Trillion surpassing the prior peak in 2008. The Experian eighth annual State of Credit report greatly supported the consumer behavior trends observed for the past year. Spanning the generations It is no surprise that generation Z (the “Great Recession Generation”) is conservative and prudent in their approach to credit because they are the most familiar with the post financial crisis economy. Results showed Millennials experienced a drop in overall debt, and an increase in mortgage debt reflects the national homeownership affordability challenge facing this generation. As first time homebuyers, millennials have to relatively tighten their spending as they dedicate an ever-growing portion of their income to housing. On the other end of the spectrum, the results of the study showed that Baby Boomers’ had sizable debt (including mortgage debt), which reflects the generation’s intent to stay active in their communities and in their homes much longer than prior generations have done. A recent Harvard study reported that by 2035, one out of three American households will be headed by an individual 65 years of age or older, compared to current ratio of one out of five households. What’s on the horizon? It is reasonable to assume that these trends may continue into 2018, as the underlying conditions continue to persist. A closer eye should be kept on student and auto loans due to the significant increase in portfolio size and increasing default rates compare to other debt. Editor’s note: This post was written by Fadel N. Lawandy, Director of the C. Larry Hoag Center for Real Estate and Finance and the Janes Financial Center at the George L. Argyros School of Business and Economics, Chapman University. Fadel joined the George L. Argyors School of Business and Economics, Chapman University after retiring as a Portfolio Manager from Morgan Stanly Smith Barney in 2009. He has two decades of experience in the financial industry with banking, credit management, commercial/residential real estate acquisition and financing, corporate finance, mergers and acquisitions, quantitative and qualitative analysis and research, and portfolio management. Fadel currently serves as the Chairman of the Board and President of CFA Society Orange County, and is an active member of the CFA Institute.
The average number of retail trades per consumer has been trending down since 2007. But the average consumer retail debt is trending up, roughly $73 year-over-year. When analyzing single-store credit card debt by state in 2017, we found these states had the highest retail debt
Credit card balances grew to $786.6 billion at the end of 2017, a 6.7% increase to the previous year and the largest outstanding balance in over a decade. And while the delinquency rate increased slightly to 2.26%, it is significantly lower than the 4.73% delinquency rate in 2008 when outstanding balances were $737 billion.