NEW YORK (8/24/15)--Experian and TransUnion each released reports last week that illustrate the improving credit health of the typical American consumer.

In its consumer credit default indices report, Experian found that the national composite default rate dropped 1 basis point to 0.92% for all types of credit in July.

First mortgage defaults went unchanged at 0.8%, while bank card defaults dropped by 9 basis points to 2.79%. Auto loan and second mortgage defaults also came in relatively unchanged.

“The stable consumer credit default rates confirm the recent economic improvements seen in the unemployment rate and (gross domestic product) growth,” said David M. Blitzer, managing director/chair of S&P Dow Jones’ index committee. “Recent increases in outstanding consumer credit combined with stable default rates and strong consumer sentiment point to stable individual financial conditions.”

TransUnion, meanwhile, reported that the national auto loan delinquency rate--tracking the ratio of borrowers 60 days or more delinquent on loan payments--fell to its lowest level in two years.

The rate, which fell to 0.95% in the second quarter, is down 3.1% on a year-over-year basis.

Additionally, the Chicago-based data firm found that less than one-fifth of all borrowers fall into the subprime category, a share that actually falls lower than levels seen at the outset of the financial crisis.

“Lenders are being prudent about re-entering the subprime lending market, and consumers are effectively managing their loans as delinquency rates remain stable,” said Jason Laky, TransUnion senior vice president/automotive business leader. “In today’s lending environment, we’re seeing consumers across all risk tiers take advantage of low rates.

“Super-prime consumers, typically a group with greater wherewithal to purchase their cars for cash, are also financing their cars with more frequency.”