Rates for default edged down, unaffected by COVID-19
Default rates were down in March, remaining positive despite the impact of coronavirus pandemic to the US economy.
The composite rate dipped three basis points to 0.99%, according to the S&P/Experian Consumer Credit Default Indices.
Of all the components, bank credit cards posted the highest default rate. The default rate on credit cards was at 3.94% in March, 53 basis points higher than in February. Meanwhile, the first-mortgage default rate sank seven basis points to 0.77%, and the auto loan default rate dropped eight basis points to 0.81%.
Four of the five major metro areas saw month-over-month declines in default rates. Miami had the biggest decrease, down 23 basis point to 1.43%. Los Angeles followed with a nine basis point drop to 0.71%, while New York and Dallas each dwindled one basis point to 0.99% and 1.01%. The default rate in Chicago, the only metro that did not report a decline, remained unchanged at 1.21%.
