National Credit Default Rates Rose in September
While consumer credit quality continues to look healthy, the national composite was 1.38 percent in September, slightly up from 1.34 percent in August.
NEW YORK — National default rates increased during the month of September, according to the S&P/Experian Consumer Credit Default Indices.
The national composite was 1.38 percent in September, slightly up from 1.34 percent posted in August. The first mortgage default rate was 1.28, up from 1.23 percent in August, while default rate for second mortgages rose from 0.57 percent to 0.69 percent in September.
S&P/Experian Consumer Credit Default Indices | |||
National Indices | |||
Index | September 2013 | August 2013 | September 2012 |
Composite | 1.38 | 1.34 | 1.46 |
First Mortgage | 1.28 | 1.23 | 1.36 |
Second Mortgage | 0.69 | 0.57 | 0.64 |
Bank Card | 3.14 | 3.12 | 3.70 |
Auto Loans | 1.15 | 1.11 | 1.11 |
Source: S&P/Experian Consumer Credit Default Indices | |||
Data through September 2013 | |||
Metropolitan | September 2013 | August 2013 | September 2012 |
New York | 1.38 | 1.21 | 1.28 |
Chicago | 1.77 | 1.83 | 1.82 |
Dallas | 1.23 | 1.13 | 1.03 |
Los Angeles | 1.38 | 1.44 | 1.45 |
Miami | 2.11 | 2.19 | 2.48 |
Source: S&P/Experian Consumer Credit Default Indices | |||
Data through September 2013 | |||
Meanwhile, the auto loan default rate stood at 1.15 percent in September, up from a 1.11 percent in August. The default rate for bank cars rose slightly from 3.12 percent in August to d 3.14 percent in September.
"Consumer credit quality continues to look healthy," says David M. Blitzer, managing director and chairman of the Index Committee for S&P Dow Jones Indices. "Two cities, New York and Dallas, saw their default rates rise in September, while three cities – Chicago, Los Angeles and Miami – saw decreases. All moves were small. The spread between the highest rate (Miami at 2.11 percent) and the lowest one (Dallas at 1.23 percent) is getting smaller."
More F&I
Amplify 2026 Billed as Turning Innovation Into Results
Reynolds and Reynolds says its annual retail summit will connect dealers with practical strategies, peer insight, and technology-driven ideas.
Read More →
Own Your Outcome: F&I in the Digital Customer Journey
Finance has historically been the last step in the car-buying process, but it doesn’t have to be. The customer’s journey starts long before they arrive at the dealership, and so should F&I’s involvement.
Read More →
Tariffs Could Raise Insurance Premiums
As U.S. import tariffs affect repair costs, consumers might find it more affordable to replace a damaged vehicle, according to recent Insurify tariff analysis.
Read More →
Smaller Loans, Longer Terms
The youngest generation of car buyers is more likely to finance less expensive vehicles, more than half of generation Z consumers borrowing less than $25,000.
Read More →
New Lifetime Battery F&I Product Meant to Drive Dealer Traffic
EFG Cos. offering is intended to create lifetime auto dealer engagement with customers.
Read More →
The Psychology Behind Menus That Increase Add-On Sales
There is a science to crafting a menu that gives customers confidence in the choices presented, and moving the process outside the F&I office can further boost results.
Read More →
Why Your F&I PVR Is Misleading You
Here’s a handy checklist of the numbers to track in 2026 instead.
Read More →
Auto Consumer Anxiety Presents Opportunity
A survey of U.S. drivers found the majority are concerned about finances and the economy, but those fears make many ready to buy vehicle-protection products.
Read More →
Humble and Hungry: 12 Rules for an F&I Life
Dustin Gingerich, with a decade in the F&I business under his belt, shares his thoughts on leadership, building trust with customers, and the importance of learning and innovation.
Read More →
Focus on the Opening
F&I managers must learn as much as possible about their customers, starting before they walk into their offices. The bulk of today’s consumers expect that, and good results will follow.
Read More →