Experian: 14% of U.S. Pop. Has 10-Plus Credit Cards
IRVINE, Calif.-Approximately 14% of the U.S. population has more than 10 credit cards, according to the latest National Score Index study by Experian Consumer Direct, a provider of online direct-to-consumer credit reports, scores and monitoring products.
The study used Experian data as of November 2006 to examine consumer credit card use on both a statewide and a national level.
The states with the highest percentage of consumers with at least 10 credit cards are New Hampshire and New Jersey, where the average is approximately 20%. More critical to financial management is how much consumers use the cards they carry, Experian said. Nationally, one in seven consumers (14.3%) use 50% or more of their available credit. Alaska and Hawaii top this category, with about 17% of their residents using more than 50% of their available credit. Overall the study found:
* U.S. consumers have an average of four credit cards.
* Approximately 51% of the U.S. population has at least two credit cards and about 14% has more than 10 credit cards.
* About 14% of the U.S. population uses at least 50% of their available credit.
* The national average credit score for those with credit card utilization of at least 50% is 645, compared with the overall national average of 674.
For info: www.FreeCreditReport.com or www.NationalScoreIndex.com
Cornerstone: Several Factors Hurt Branch Productivity
SCOTTSDALE, Ariz.-Recent research by Cornerstone Advisors found financial institution branch managers and platform employees reported an increase in the amount of time spent on administrative tasks to 10% from 5%.
The study noted this increase did not include any time those people spend managing and supervising. Customer self-service migration has hurt branches as much as it has helped. What can complicate this is the fact many branches do not have access to information or authority to resolve issues with customers because those processes are centralized. This puts branches in the position of too often being the "middleman" between customers and researchers/decision markers.
There still is too much manual activity sales reporting and information gathering. In the Cornerstone survey, the company asked banks to describe how sales tracking and reporting occurred. Only 14% said it was completely automated, and over half of those had to write their own systems to get it automated. Twenty-four percent said tracking and reporting was completely manual.
Both banks and CUs are actively seeking ways to decrease the time required in administrative areas. The search is on for automation power that can be deployed with account opening across delivery channels.
Private Loans Growing In Advanced Education Loans
WASHINGTON, D.C.-Private loans are becoming an essential part of financing postsecondary education in today's market of rising tuition costs and fees, according to a new report issued by the Institute for Higher Education Policy.
The study, titled "The Future of Private Loans: Who Is Borrowing, and Why?" found nearly a quarter of all professional students took out a private loan, compared with 5% each of all undergraduates and graduates.
More than three-quarters of private loan borrowers also receive federal aid available through the Stafford loan program. Private loan borrowers tend to be students who: attend private institutions; enroll full time for the full school year, or work less than full time; as well as undergraduates who are dependent (those under 24 years old) and more apt to come from middle-income families; and undergraduates and graduates who are financially independent and likely to have low incomes.
Supported by The Pew Charitable Trusts, the Institute's national report examines recent developments in the private loan industry, characteristics of private loan borrowers, and trends that might impact the growth of private loans in the future. It draws on recent financial aid data and in-depth information from finance professionals to offer the most comprehensive look at private loans within the student lending industry.
Other key findings:
* Of all student loans awarded, $16 billion (19%) was in the form of private loans, compared to less than 5% just 10 years ago. Of all private loan borrowers, 83% are undergraduate students, 9% are graduate students, and 7% are professional students. Yet, professional students borrow an average of $11,000 per year in private loans, compared to about $6,000 per year for undergraduates and $8,000 per year for graduate students.
