Subprime Credit Card Limits are Highest in 5 years

Consumers are paying bills on time as steady growth in subprime credit card limits continue

Costa Mesa, Calif., September 19, 2016 — The first six months of 2016 has shown that the total credit card limits among the subprime and deep subprime credit range totaled $6.4 billion, the highest amount reported for those groups in the last five years. The Q2 2016 data is from the latest Experian Market Intelligence Brief report available for download today.

While year-over-year comparisons show a 7% increase in overall delinquency rates, delinquencies have declined sharply in the five years since the start of economic recovery. In fact, at the same time as credit limits have increased, delinquency rates among subprime and deep subprime consumers have decreased by 6%. Overall, all consumers have shown an ability to meet their payment obligations as delinquency rates have decreased by 43% comparing Q2 2016 versus Q2 2011.

“Consumers credit card behavior improved since exiting the recession as evidenced by the growth of credit card limits in particular among the subprime credit card market,” said Kelly Kent, vice president of Experian Decision Analytics. “Yet, even with the solid improvements, the year-over-year figures indicate a slight increase in delinquency rates.”

Across the country, 32 states saw their credit card delinquency rates improve by double-digits during those 5 years. Washington, California, and Oregon led the way, followed by New Hampshire and Hawaii. Looking at the year-over-year comparisons, the 2016 Q2 data shows four states – Maine, Alabama, Washington and New Hampshire - that saw an improvement in their 60+ data delinquency rates. However, 49 states saw an improvement in rates when comparing Q2 2016 data versus Q1 2016.

States with Largest Improvements in 60+ Day Delinquency Rates
Rank State 5-year Percent Change
1 Washington -33%
2 California -28%
3 Oregon -27%
4 New Hampshire -26%
5 Hawaii -25%
6 Florida -25%
7 Nevada -24%
8 Maine -24%
9 Utah -23%
10 Wisconsin -22%
Note: Experian Marketing Intelligence Brief data shows the percent change comparing Q2 2016 vs. Q2 2011 60+ day delinquency rates data.

Download the latest Q2 2016 Experian Market Intelligence Brief report today.

Matt Tatham
Experian Public Relations
1 917 446 7227

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