2013 Experian credit data shows continued consumer resilience during recovery
Experian-Oliver Wyman data reports a 46 percent increase in home equity lending; 19 percent increase in bankcard origination volume
“Overall from 2013 we saw a strong steady improvement in the economy similar to our 2012 year-end review. Consumer confidence increased as they continue to be resilient during the ongoing recovery,” said Linda Haran, senior director of product management and strategy for Experian Decision Analytics. “While overall consumer debt increased 6 percent, it was not heavily weighted in one particular VantageScore segment. Debt increases occurred across all VantageScore consumer segments equating to a balanced distribution of increases in total debt year-over-year. That represents smarter spending among all consumers.”
“Other positive indicators coming out of 2013 include bankruptcies declining 12 percent from 2012 and consumer delinquency trends continuing to decrease. Home Equity originations realized strong growth in 2013, exceeding 2009 levels as new lending was up 42 percent in Q4 2013 over the same period a year ago.”
Watch Experian Decision Analytics analysts Linda Haran and Alan Ikemura discuss the latest trends from the Experian-Oliver Wyman Q4 2013 report on consumer debt, bankcards, mortgages and auto.
2013 Mortgage trends included:
- Overall mortgage origination volume in 2013 was $2 trillion up from $1.9 trillion in 2012
- 2013 saw annual growth of 25% in new home purchase volume compared to 2012
- Overall mortgage 30+ day mortgage delinquency rates were down 14 percent in 2013 versus 2012
- The West region saw 30+ day mortgage delinquency rates drop 23 percent in 2013 versus 2012.
- California saw a 24 percent decline in late mortgage payments.
2013 Bankcard trends included:
- Analyzing the data for 2013 shows a 19 percent increase in bankcard origination volume, growing from $228 billion to $271 billion year over year.
- Two-thirds of new bankcard originations occurred among the Super Prime (781 - 850) and Prime (661-780) VantageScore tiers.
- The U.S. 60+ day delinquency bankcard rates overall improved 14.5 percent in Q4 2013 versus Q4 2012.
- All 50 states saw bankcard delinquency rates improve for the 60+ day category.
- California, Tennessee, Massachusetts, Michigan and Wisconsin were the top 5 states that improved their 60+ day delinquency bankcard rates in Q4 2013.
- Arizona, New Mexico, Arkansas, West Virginia and Alaska were the bottom 5 states in terms of overall percentage improvement among 60+ day delinquency bankcard rates in Q4 2013.
- Experian has dedicated educational resources to help consumers understand the impact debt has on credit. Consumers can visit our Live Credit Smart website to learn more.
For more insight from Experian Decision Analytics, watch our 2013 Q4 Experian–Oliver Wyman Market Intelligence Reportpresentation: http://ex.pn/1eJaRZB.
Make sure to join us for Q1 2014 Experian–Oliver Wyman Market Intelligence Report webinar.
About the data
The data for this insight and analysis was provided by Experian’s IntelliViewSM product. IntelliView data is sourced from the information that supports the Experian–Oliver Wyman Market Intelligence Reports and is easily accessed through an intuitive, online graphical user interface, which enables financial professionals to extract key findings from the data and integrate them into their business strategies. This unique data asset does this by delivering market intelligence on consumer credit behavior within specific lending categories and geographic regions.
Experian is the leading global information services company, providing data and analytical tools to clients around the world. The Group 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 March 31, 2013, was US$4.7 billion. Experian employs approximately 17,000 people in 40 countries and has its corporate headquarters in Dublin, Ireland, with operational headquarters in Nottingham, UK; California, US; and São Paulo, Brazil.
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