Latest State of Credit report highlights less
credit card debt, lower utilization rates and fewer missed payments
year-over-year
In a continued effort to educate consumers about factors
influencing their financial health, Experian® today released key
findings from its 11th annual State of Credit report, which
examined how consumers are managing their credit histories against
the backdrop of the COVID-19 pandemic. This year’s report provided
an extended view into how consumers are managing and repaying their
debts, showing most Americans are practicing responsible credit
management by reducing utilization rates, credit card balances and
late payments.
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the full release here:
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Experian finds Americans are maintaining
healthy credit profiles. Source: Experian’s State of Credit Report
(Graphic: Business Wire)
Results from this year’s report were released following the
announcement of Experian’s collaboration with Operation HOPE, which
aims to empower vulnerable consumers to improve their financial
health through education and action.
“Against the backdrop of the pandemic, we are seeing promising
signs of responsible credit management, including lower credit card
balances, decreased utilization rates and fewer missed payments –
especially among younger consumers,” said Alex Lintner, group
president Experian Consumer Information Services. “Educating
Americans about the factors included in their credit profile and
how to manage these responsibly is of critical importance,
especially on the road to economic recovery.”
When compared to 2019, Americans are carrying fewer credit and
retail cards and less credit card debt on average. Delinquency
rates for 30–59, 60–89 and 90–180 days past due all decreased
year-over-year. While retail spending, nonmortgage debt and
mortgage debt increased, utilization rates — sometimes referred to
as balance-to-limit ratios — decreased by four percent to 26
percent in 2020. These factors attributed to an average credit
score of 688 — a six-point increase from the same period in
2019.
Highlights of Experian’s State of Credit report:
2020 State of Credit
Report
2019
2020
Average VantageScore®[1, 2]
682
688
Average number of credit cards
3.07
3.0
Average credit card balance
$6,629
$5,897
Average revolving utilization rate
30%
26%
Average number of retail credit cards
2.51
2.42
Average retail credit card balance
$1,942
$2,044
Average nonmortgage debt
$25,386
$25,483
Average mortgage debt
$213,599
$215,655
Average 30–59 days past due delinquency
rates
3.9%
2.4%
Average 60–89 days past due delinquency
rates
1.9%
1.3%
Average 90–180 days past due delinquency
rates
6.8%
3.8%
1 VantageScore is a registered trademark of VantageScore
Solutions, LLC. 2 VantageScore range is 300 to 850.
Positive results driven by younger borrowers
The year-over-year increase in average credit scores can be
attributed to younger consumers practicing responsible credit
management. While average utilization rates dropped for every
generation, the most significant decreases were seen in Gen Z
borrowers who saw a 6 percent reduction in their use of available
credit, followed by millennials, or Gen Y, who saw a 5 percent
decrease year-over-year.
While Gen Z and Gen Y are carrying more credit cards than they
were in 2020, their credit card balances decreased year-over-year.
Looking at 30–59, 60–89 and 90–180 days past due delinquency rates
showed Gen Z had fewer missed payments than all generations, except
the silent generation. Lower utilization rates, less credit card
debt and fewer missed payments fueled a 13-point increase in
average credit scores for Gen Z and an 11-point increase for
millennials.
“Credit scores are a reflection of the information included in
your credit report,” said Rod Griffin, senior director consumer
education and advocacy at Experian. “They are one piece of the
puzzle. From buying a home to purchasing a new family car and much
more, the types of purchases that are going to create meaningful
change in consumers’ lives require a strong credit history. It is
encouraging to see trends of responsible credit management for
consumers of all ages.”
2020 findings by
generation
Gen Z
Gen Y
Gen X
Boomers
Silent
Average VantageScore®
654
658
676
716
729
Average number of credit
cards
1.64
2.66
3.3
3.45
2.78
Average credit card balance
$2,197
$4,651
$7,718
$6,747
$3,988
Average revolving utilization
rate
30%
30%
32%
24%
13%
Average number of retail credit
cards
1.64
2.1
2.59
2.63
2.21
Average retail credit card
balance
$1,124
$1,871
$2,353
$2,100
$1,558
Average nonmortgage debt
$10,942
$27,251
$32,878
$25,812
$12,869
Average mortgage debt
$172,561
$232,372
$245,127
$191,650
$159,517
Average 30–59 days past due
delinquency rates
1.6%
2.7%
3.3%
2.2%
1.2%
Average 60–89 days past due
delinquency rates
1.0%
1.5%
1.8%
1.2%
0.7%
Average 90–180 days past due
delinquency rates
2.5%
4.4%
5.3%
3.2%
1.9%
In an effort to encourage consumers to regularly monitor and
understand the information in their credit reports, Experian joined
forces with the other U.S. credit reporting agencies to offer free
weekly credit reports to all Americans through April 2021 via
www.annualcreditreport.com.
In addition to the free weekly credit report at
annualcreditreport.com, Experian also offers consumers free access
to their credit report and ongoing credit monitoring at
Experian.com.
Additional credit education resources and tools
- Join Experian’s #creditchat hosted by @Experian on Twitter with
financial experts every Wednesday at 3 p.m. Eastern time.
- Visit the Ask Experian blog for answers to common questions,
advice and education about credit.
- Add positive telecom and utility payments to your Experian
credit report for an opportunity to improve your credit scores by
visiting www.experian.com/boost3
- For additional resources, visit
http://www.experian.com/consumereducation or
www.experian.com/coronavirus.
Analysis methodology
Experian’s analysis is based on a statistically relevant
sampling of Experian’s consumer credit database, available on the
Experian Ascend Technology PlatformTM, from Q2 2019 and 2020.
Analyzed credit reports contained no personally identifiable
information. Credit scores are based on VantageScore (range
300–850).
About Experian
Experian is the world’s leading global information services
company. During life’s big moments — from buying a home or a car to
sending a child to college to growing a business by connecting with
new customers — we empower consumers and our clients to manage
their data with confidence. We help individuals to take financial
control and access financial services, businesses to make smarter
decisions and thrive, lenders to lend more responsibly, and
organizations to prevent identity fraud and crime.
We have 17,800 people operating across 45 countries, and every
day we’re investing in new technologies, talented people and
innovation to help all our clients maximize every opportunity. We
are listed on the London Stock Exchange (EXPN) and are a
constituent of the FTSE 100 Index.
Learn more at www.experianplc.com or visit our global content
hub at our global news blog for the latest news and insights from
the Group.
Experian and the Experian trademarks used herein are trademarks
or registered trademarks of Experian and its affiliates. Other
product and company names mentioned herein are the property of
their respective owners.
3 Results may vary. See Experian.com for details
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201020005405/en/
Amanda Garofalo
Experian Public Relations 714-460-3739
amanda.garofalo@experian.com
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