NEW YORK (8/21/14)--The national consumer credit default rate edged down 1 basis point in July, according to the S&P/Experian Consumer Credit Default index, keeping credit defaults across the United States at historically low levels.
The national composite index recorded a rate of 1.01% in July, the lowest in more than 10 years of the index's history, according to Experian.
Further, mortgage defaults fell to 0.88%, auto-loan defaults remained unchanged at 0.96% and bank card defaults sank by 16 basis points to 2.86%.
"Mortgage default rates have been trending down while auto and bank cards are a bit higher than their historical lows set in April and March," said David M. Blitzer, managing director and chair of the S&P Dow Jones Indices index committee.
Household debt increased in the second quarter, driven largely by mortgages, Blitzer added, while non-housing debt also rose slightly.
Broken down into several major cities, Los Angeles watched its overall default rate drop to the lowest level on record at 0.66%, Dallas experienced a 7-point decline, and Chicago and Miami posted their lowest default rates since 2006.
"All five cities--Chicago, Dallas, Los Angeles, Miami and New York--remain below default rates seen a year ago," Blitzer said.