How Late Auto Payment Can Affect Credit Score
IRVINE, Calif.-The average credit score for U.S. consumers with no late auto payments is nearly 100 points higher than for those who have at least one late payment, according to the latest National Score Index study by Experian Consumer Direct.
The national average credit score for consumers with no late auto payments is 703, while the average score for consumers with at least one late payment is 605. The average credit score drops further to 580 when an auto payment is late by 90 days or more.
Texas had the lowest average credit score for those with at least one late auto payment at 592 and also had the highest monthly auto payment of $570. Conversely, consumers in New Hampshire had the highest average credit score for those with no late auto payments at 728 and an average monthly auto payment of $442.
Experian's National Score Index further found consumers in Wyoming have the highest average auto loan balance ($19,340) while consumers in Michigan have the lowest average auto loan balance ($11,455).
Experian's National Score Index study is based on a nationwide sampling of 3 million consumer credit files. Using the PLUS Score model, the national average credit score for January 2007 was 673, for February it was 672, and for March it was 672. Experian's National Score Index website is updated monthly with the most recent Experian data on U.S. consumers' credit and is an indicator of the nation's overall financial health.
For info: www.NationalScoreIndex.com
TNS Group Study: Debit Card Usage Up Dramatically
NEW YORK-A new study found the percentage of U.S. households employing debit cards is up dramatically, card penetration rates are slowing and transactions are increasing.
TNS Group, a market-intelligence firm based here, conducted the study. The company said in 2006, 63% of U.S. households had at least one debit card-up from 52% in 2002, 49% in 2001 and 36% in 1998.
By 2009, the number of households with debit cards is expected to reach 73%, according to George Ravich, SVP and general manager of syndicated research at TNS. Ravich said debit card penetration still is increasing, but at a slower rate.
The study further found households use their debit cards to pay for 13.3 transactions per month, compared to paying for 6.6 transactions a month with credit cards. Merchant acceptance of debit cards is contributing to the increase, the company said. The growth rate of debit transactions is expected to remain at 15% annually for several years.
Debit card users are shifting toward more expensive purchases, TNS said. Debit card transactions also are increasing for smaller purchases because major card companies no longer require card users to sign a receipt for purchases of less than $25. Debit cards are paying for more meals, with transactions at quick-service restaurants for first quarter growing 32% over the previous year.
For info: www.tnsgroup.com.
