Four in 10 Canadian Credit Card Holders Uncertain About Importance of Paying More than Minimum Due - Seite 3

The study found that the correlation with delinquency was consistent for markets as far ranging as Canada and Hong Kong. For instance, serious credit card delinquency rates (90 days or more past due, or "90+ DPD") in Hong Kong dropped substantially for all consumer risk types as TPR increased -- even when controlling for traditional risk scores.

Credit Card Serious Delinquency Rates (90+ DPD) - Hong Kong
TPR		Credit Score Risk Range
		High Risk		Medium Risk		Low Risk
TPR ≤ 5		3.85%		1.32%		0.22%
5 < TPR ≤ 15		2.92%		0.79%		0.05%
TPR > 15		1.47%		0.23%		0.02%

The study further confirmed that payment behavior on revolving debt does impact performance on other credit products, such as auto loans.

Auto Loan Serious Delinquency Rates (90+ DPD) - Canada
TPR		Credit Score Risk Range
		High Risk		Medium Risk		Low Risk
TPR ≤ 5		1.77%		0.56%		0.10%
5 < TPR ≤ 15		1.62%		0.36%		0.04%
TPR > 15		1.40%		0.16%		0.02%

"Our study confirmed that as TPR increased, delinquency rates declined for credit cards and auto loans in these varying markets," added Becker. "This is a powerful new metric that adds value beyond the traditional credit score for evaluating risk."