Tag: credit trends

The economic expansion just passed the eight-year mark, and consumer credit defaults across mortgages, bankcards and auto loans are at pre–financial crisis levels

Financial health means more than just having a great credit score or money in a savings account. It includes being able to manage daily finances, save for the future and weather a financial shock.

In the financial services universe, there is no shortage of players battling for consumer attention and share of wallet. Here’s a look at how credit unions have fared over the past two years compared to banks and online lenders:

Study noted that travelers relied heavily on credit for vacation purchases last yr—with many planning to charge much of their vacation expenses this summer

Recent analysis of the personal loan market revealed a 9-pnt negative shift in the avg VantageScore® credit score for personal loan originations from Q3 to Q4 of '16.

2017 is expected to bring some big changes. But what do those changes mean for the financial services space? Here are 3 trends and twists Experian expects to occur over the next 12 months:

Who sports higher scores, less debt and more on-time payments? According to Experian’s latest analysis, women take the credit title.

Experian data shows consumers are more confident managing their credit since the recession. The Q3 2015 Experian Market Intelligence Brief was released today featuring data that highlights consumer credit card debt has now reached its highest level since Q4 2009. Credit card debt levels reached $650 billion in Q3 2015, the highest it has been since Q4 2009 when it was $667 billion. Credit card delinquency rates on outstanding balances 60 or more days past due have decreased 71 percent during the same time period. Combining those indicators with the national unemployment rate dropping 50 percent during the same span illustrates a positive economic outlook on credit card trends among lenders and consumers. “Overall credit card limits have increased 102 percent since Q4 2009 with $82 billion originated in Q3 2015,” said Kelly Kent, vice president of Experian Decision Analytics. “The increase in limits from lenders and the steady climb in credit card debt combined with exceptional delinquency rates signals greater confidence among consumers as they are showing more assurance in managing their credit since the recession. We expect to see credit card debt increase in Q4 based on historical seasonal trends driven by the holiday shopping season especially with the early positive holiday sales as a sign.” The Q3 2015 Experian Market Intelligence Brief report is now available.

Will the U.S. consumer spend more this holiday season? One way to measure this behavior is through bankcard utilization rates.

According to the latest Experian-Oliver Wyman Market Intelligence Report, mortgage originations for Q2 2015 increased 56% over Q2 2014 — $547 billion versus $350 billion.

Mortgage originations kicked off Q1 2015 with a 25% year over year increase to $315 billion.

Consumer debt for every major consumer lending category has decreased over the past few years, except for student loans.

According to the latest Experian-Oliver Wyman Market Intelligence Report, home equity line of credit (HELOC) originations warmed up significantly heading into summer.

Are you sure you are making the best consumer credit decisions? Given the constantly evolving market conditions, it is a challenge to keep informed. In order to confidently grow and manage the bottom line, organizations need to avoid these four basic risks of making credit decisions with limited trend visibility. Competitive Risk - With limited visibility to industry trends, organizations cannot understand their position relative to peers. Product Risk - Organizations without access to the latest consumer behaviors cannot identify and capitalize on emerging trends. Market Risk - Decisions suffer when made without considering market trends in the context of the economy. Resource Risk - Extracting useful insights from vast market data requires abundant resources and comprehensive expertise. Get more information on the business risks of navigating credit decisions with limited trend visibility.

According to the latest Experian-Oliver Wyman Market Intelligence Report, mortgage originations for Q1 2014 decreased by 53 percent over Q1 2013 - $235 billion versus $515 billion, respectively.