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 May 22, 2014

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

Figure 11: Serious Delinquency Rate for All Forms of Debt

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.

The District’s serious delinquency rate—the percent of District borrowers who have at least one debt 90 days past due or worse in their credit file—generally trended up from 10.5 percent in late 2005 to a peak of 12.4 percent in the first quarter of 2011. The District’s overall serious delinquency rate has since eased, to 10.8 percent in the first quarter of 2014. However, the rates are much higher in the District’s low-income tracts (24.2 percent) and moderate-income tracts (16.1 percent). For each tract-income category and overall, the District’s serious delinquency rates on consumer debt lie distinctly below the corresponding national rates.

Figure 12: Serious Delinquency Rate for Mortgage Debt

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.

The District’s rates of serious mortgage delinquency peaked in 2009–2010 and have since eased, overall and in all tract-income categories. However, rates remain well above their 2005 levels. Serious delinquency rates on mortgages are inversely related to tract income. As of the first quarter of 2014, they ranged from about 1.7 percent in the District’s upper-income tracts to about 10.1 percent in its low-income tracts. The rate of serious mortgage delinquencies is generally a few percentage points lower in the Ninth District than in the nation, except in low-income tracts, where the rates are similar.

Figure 13: Serious Delinquency Rate for Bank Card Debt

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.

Serious delinquencies on bank-issued credit cards have gradually trended down since 2005, overall and in each tract-income category nationally and in the Ninth District. Overall, 6.2 percent of Ninth District credit files showed a serious bank card delinquency in the first quarter of 2014, compared to over 9 percent in early 2005. Serious delinquency rates in the Ninth District rise as income falls, ranging from 4 percent in upper-income tracts to 14.1 percent in low-income tracts. The rates of serious delinquency on bank cards are higher nationally than in the Ninth District, both overall and in each income category, but their trends over time are similar.

Figure 14: Serious Delinquency Rate for Student Debt

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.

Rates of serious delinquency on student loans are not directly comparable before and after the third quarter of 2012, when, for technical reasons, a large loan servicer reclassified a large number of student loans as 90+ days delinquent. The reclassification caused the District’s overall rate of serious delinquencies to jump over 3 percentage points, to 11.5 percent. After the third quarter of 2012, the rate eased slightly, to 11 percent in the first quarter of 2014. Serious student debt delinquency rates are inversely related to tract income. As of the first quarter of 2014, rates in the District ranged from about 7.4 percent of loans in upper-income tracts to 20.7 percent in low-income tracts. For each tract-income category and overall, the rate of serious student debt delinquency is lower in the District than nationally.

Figure 15: Serious Delinquency Rate for Auto Loans

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.

Rates of serious delinquency among auto loan borrowers have been declining since reaching post-recession highs in late 2010 or early 2011. This is true for all tract-income categories nationally and in the District. However, serious auto loan delinquency rates in all categories remain at least somewhat above 2005 levels. The rates rise as income falls; as of the first quarter of 2014, rates in the District ranged from about 2.2 percent in upper-income tracts to 3.9 percent overall and 13.6 percent in low-income tracts. Serious auto loan delinquency rates are generally lower in the Ninth District than nationally.

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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