Experian: Credit Card Delinquencies Down, Late Mortgage Payments Up

Experian released 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.

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. www.experianplc.com