Performance in the Consumer Credit Market Holds Steady as Number of Borrowers in Financial Hardship Status Stabilizes - Seite 2

Since the pandemic began in March 2020, delinquency performance has held steady, with credit products across auto, credit card, mortgage and personal loans all showing a recent month-over-month improvement in performance from May to June 2020.

Credit cards saw the greatest decline in delinquency over this period with borrowers 90+ days past due (DPD) decreasing from 1.76% to 1.48% month-over-month. This decrease also held true for accounts in 30+ DPD delinquency status – an early indication that may signal consumer distress – by decreasing from 3.06% to 2.66% from May to June (compared to 3.49% at 30+ DPD in June 2019).

Consumer balances for credit card also showed a 7.41% year-over-year decline from June 2019 to June 2020 as well as a monthly balance decrease of $43 since May. These decreases may signify that consumers are continuing to manage debt prudently and are paying down their existing card balances. At the same time, overall consumer credit lines have declined from $24,641 in June 2019 to $23,724 in June 2020, which is also down from $23,800 in May 2020.

“These are signs of a credit market that continues to function despite the spike in consumer unemployment,” said Paul Siegfried, senior vice president and credit card business leader at TransUnion. “When there is uncertainty in the market, consumer credit performance is highly scrutinized and new accounts generally will not receive the same type of credit limit as they might have prior to a crisis. However, the longer individuals who are not in an accommodation program perform well, the more likely additional credit will be extended.”

June Industry Snapshot of Consumer-Level Delinquency Performance by Credit Product
Timeframe	Auto	Credit Card	Mortgage	Personal Loans
June 2020	1.50%	1.48%*	1.07%	3.11%
May 2020	1.55%	1.76%*	1.14%	3.14%
April 2020	1.33%	1.87%*	1.27%	3.27%
March 2020	1.37%	1.96%*	1.40%	3.40%
June 2019	1.23%	1.71%*	1.36%	3.10%

*Credit card delinquency rate reported as 90+ DPD per industry standard; all other products reported as 60+ DPD