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

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.  Cincinnati

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.

For more information on managing credit, visit http://www.experian.com/credit-education/credit-information.html.

To view other recent  Experian studies, visit the following links: Experian provides insight into credit card trends of the top 20 major metropolitan areas and Experian study finds that consumers are paying less on monthly payments than three years ago

Contact:
Kristine Snyder 
Experian Public Relations
1 714 830 5192
kristine.snyder@experian.com

About Experian
Experian is the leading global information services company, providing data and analytical tools to clients in more than 80 countries. The company helps businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. Experian also helps individuals to check their credit report and credit score and protect against identity theft.

Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. Total revenue for the year ended 31 March 2011 was $4.2 billion. Experian employs approximately 15,000 people in 41 countries and has its corporate headquarters in Dublin, Ireland, with operational headquarters in Nottingham, UK; California, US; and São Paulo, Brazil.

For more information, visit http://www.experianplc.com.

Experian and the Experian marks used herein are service marks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein are the property of their respective owners.