Margins and Paddings Update

Debt is often thought of as a scary word and many spend their lives trying to avoid it at all costs. Understanding what credit is, why you need it and how to build it can help make it less frightening and can actually put you in control. Debt doesn't have to be a four-letter word. To wrap up Financial Literacy Month, Experian released a study this week that takes an in depth look at debt and credit scores in the 20 largest cities across the U.S. and compares the numbers to where these cities were four years ago. The findings show that Detroit residents have the least amount of debt, while the residents of Dallas have the most. From a national perspective, debt has increased by 5 percent and in 19 of the 20 cities studied, average debt has increased, which actually signals a positive trend. How is that possible, you ask? Well, the analysis showed that with the increases, these large cities are actually managing the debt they have quite well, and that credit lending is opening up. REMEMBER: Credit is a tool that if managed correctly can be a positive – the key is not to misuse the credit you have. Take a look at the map below to see how these large cities fared, and visit www.livecreditsmart.com to read more about the study and how you can make better financial decisions and be more aware of where you stand from a credit perspective. In today’s changing economy, it’s more important than ever to take control of your credit and live credit smart no matter where you live. See the map below and view the news release for more information on this study.

Did you know children are increasingly vulnerable to being a victim of identity theft? Their clean credit history is an easy target for perpetrators.  Thieves often can profit for years before the crime is detected. In general, minors should not have credit activity or a credit report until they apply for loans or a credit card. That said, it is possible that they may have a credit history if you have added them as an authorized user to your credit accounts during their teen years. If you are concerned, checking your credit report is always a good first step in determining whether or not you are a fraud victim, and the same rule applies to children as well. Check out the infographic below for warning signs, steps you can take to see if your child has a credit report and tips to prevent your child from becoming a fraud victim. Here are the measures Experian uses to protect minors’ credit histories: Experian will not knowingly disclose a credit report that belongs to a minor except to a parent or legal guardian. At www.annualcreditreport.com if you enter a birth date that is associated as being under the age of 13, it will automatically reject the request to pull the credit report. Experian will not provide a credit report to a lender if our records indicate the report belongs to a minor. We will return a notice to the lender that states the report they requested is associated with a minor. The lender then can take appropriate action to protect the child from credit fraud. You cannot request your child’s credit report without providing appropriate documentation that proves you are the parent or legal guardian. For more information on minor’s credit visit the Ask Experian blog.

Experian-Oliver Wyman data reports a 46 percent increase in home equity lending; 19 percent increase in bankcard origination volume Costa Mesa, Calif., April 30, 2014 — Experian®, the leading global information services company, today released year-end analysis of credit and mortgage trends from the 2013 Q4 Experian–Oliver Wyman Market Intelligence Report that showed positive economic indicators along with smarter consumer spending. “Overall from 2013 we saw a strong steady improvement in the economy similar to our 2012 year-end review. Consumer confidence increased as they continue to be resilient during the ongoing recovery,” said Linda Haran, senior director of product management and strategy for Experian Decision Analytics. “While overall consumer debt increased 6 percent, it was not heavily weighted in one particular VantageScore segment.  Debt increases occurred across all VantageScore consumer segments equating to a balanced distribution of increases in total debt year-over-year. That represents smarter spending among all consumers.” “Other positive indicators coming out of 2013 include bankruptcies declining 12 percent from 2012 and consumer delinquency trends continuing to decrease. Home Equity originations realized strong growth in 2013, exceeding 2009 levels as new lending was up 42 percent in Q4 2013 over the same period a year ago.” Watch Experian Decision Analytics analysts Linda Haran and Alan Ikemura discuss the latest trends from the Experian-Oliver Wyman Q4 2013 report on consumer debt, bankcards, mortgages and auto. 2013 Mortgage trends included: Overall mortgage origination volume in 2013 was $2 trillion up from $1.9 trillion in 2012 2013 saw annual growth of 25% in new home purchase volume compared to 2012 Overall mortgage 30+ day mortgage delinquency rates were down 14 percent in 2013 versus 2012 The West region saw 30+ day mortgage delinquency rates drop 23 percent in 2013 versus 2012. California saw a 24 percent decline in late mortgage payments. 2013 Bankcard trends included: Analyzing the data for 2013 shows a 19 percent increase in bankcard origination volume, growing from $228 billion to $271 billion year over year. Two-thirds of new bankcard originations occurred among the Super Prime (781 – 850) and Prime (661-780) VantageScore tiers. The U.S. 60+ day delinquency bankcard rates overall improved 14.5 percent in Q4 2013 versus Q4 2012. All 50 states saw bankcard delinquency rates improve for the 60+ day category. California, Tennessee, Massachusetts, Michigan and Wisconsin were the top 5 states that improved their 60+ day delinquency bankcard rates in Q4 2013. Arizona, New Mexico, Arkansas, West Virginia and Alaska were the bottom 5 states in terms of overall percentage improvement among 60+ day delinquency bankcard rates in Q4 2013. Experian has dedicated educational resources to help consumers understand the impact debt has on credit. Consumers can visit our Live Credit Smart website to learn more. For more insight from Experian Decision Analytics, watch our 2013 Q4 Experian–Oliver Wyman Market Intelligence Report presentation: http://ex.pn/1eJaRZB. Make sure to join us for Q1 2014 Experian–Oliver Wyman Market Intelligence Report webinar. About the data The data for this insight and analysis was provided by Experian’s IntelliViewSM product. IntelliView data is sourced from the information that supports the Experian–Oliver Wyman Market Intelligence Reports and is easily accessed through an intuitive, online graphical user interface, which enables financial professionals to extract key findings from the data and integrate them into their business strategies. This unique data asset does this by delivering market intelligence on consumer credit behavior within specific lending categories and geographic regions.