Consumer Credit Conditions in the Ninth District

To enhance understanding of consumer credit conditions in the Ninth Federal Reserve District and nationwide, we offer visual representations of credit quality and credit usage on the tabs below. Note: For each point in time shown, the credit quality charts for credit scores and files with a foreclosure reflect debt repayment experience over several previous years. The remaining charts reflect credit usage or delinquent debt as of the final month of each quarter.
Data source: The Federal Reserve Bank of New York/Equifax Consumer Credit Panel.

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Last updated September 25, 2014

”MFI“ in the figures below stands for median family income, which is defined in our Data Overview.

Figure 17: Median Equifax Risk Score (ERS)

For the Ninth District (dark lines) and Nationwide (light lines)

Tradelines with balances charged off due to nonpayment within the last 7 years are included in these data, to the extent that lenders continue to report them.

Median Equifax Risk Scores are distinctly higher in the Ninth District than in the U.S. and are slightly higher now than in 2005 (both nationally and in the Ninth District). In the District’s low-income census tracts, the median score as of the second quarter of 2014 was 661, just above a cutoff of 660 that is often used to define subprime consumers. Nationally, the median score in low-income tracts was 634.Median scores in moderate-income tracts are near prime in the District (about 714) but only a bit above subprime nationally (667). In the District overall, as well as in its middle- and upper-income tracts, most credit files have prime scores, typically near to or above 750.

Figure 18: Share of Consumer Credit Files with ERS below 660

For the Ninth District (dark lines) and Nationwide (light lines)

Tradelines with balances charged off due to nonpayment within the last 7 years are included in these data, to the extent that lenders continue to report them.

As implied by the median ERS results, almost half of the files in low-income tracts have credit scores below 660, placing them in the subprime score range. Even in the District’s upper-income tracts, over 16 percent of files have scores below 660, and this share rises to about 24 percent in the District as a whole and in its middle-income tracts. The fractions are all higher nationally; for example, about 34 percent of all U.S. files have scores below 660. These shares have been trending down slightly since 2011.

Data Overview

For more information about the data and methodologies used here and additional resources related to consumer credit data, see our Data Overview


Have questions or comments about this page?
Please e-mail them to mpls.communitydevelopment@mpls.frb.org.

 
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Movin' on up, fedgazette, October 2014