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Delinquencies to rise for auto loans, credit cards

December 20, 2016

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A tougher year is in store for loan performance for auto lenders and credit card issuers, but mortgage lenders will still benefit from tighter post-crisis credit standards.

So says TransUnion in its 2017 Consumer Credit Market Forecast released recently. The credit reporting and analysis company predicts an increase in delinquency rates for auto loans and credit cards in the coming year.

The key drivers for TransUnion’s projections are twofold. First, there has been an increase in subprime borrowers, with the percentage of subprime accounts at the highest level since 2010. The second: An expected 50-basis-point aggregate increase in the prime interest rate during the next 12 months.

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