SOURCE: TransUnion

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November 18, 2015 06:00 ET

TransUnion: Canadian Consumers Continue Stable Performance on Credit Products

TORONTO, ON--(Marketwired - November 18, 2015) - Canadian delinquency rates (the ratio of all accounts that are 90 or more days past due) continue to stabilize, according to TransUnion's (NYSE: TRU) Q3 2015 MarketTrends report. Delinquency rates have remained in a narrow range of 2.58% to 2.66% over the previous three quarters, and the recent Q3 reading of 2.60% indicates consumers' steady ability to make payments on time. This is a 5.5% improvement from the 2.75% delinquency rate of Q3 2014.

Double-digit percentage yearly delinquency rate declines for installment loans and lines of credit played a large role in bringing down overall delinquencies. Installment loan delinquency rates dropped nearly 11% from 3.49% in Q3 2014 to 3.11% in Q3 2015. Line of credit delinquency dropped 10% from 0.79% to 0.71% in the same timeframe.

"Line of credit delinquency rates are now at the lowest levels we've seen since we began monitoring these statistics," said Jason Wang, TransUnion's director of research and industry analysis in Canada. "The recent interest rate cuts have helped consumers manage their payments, but we advise consumers to always remember to spend within their means, regardless of whether interest rates are low or high."

 
90+ Day Delinquency Rates
Credit Product  Q3 2014  Q3 2015  Yearly PCT. Change
All Products  2.75%  2.60%  -5.49%
Auto Loans  1.06%  1.06%  0.14%
Credit Cards  2.36%  2.30%  -2.81%
Installment Loans  3.49%  3.11%  -10.84%
Lines of Credit  0.79%  0.71%  -9.94%
       

Debt Levels Marginally Dropped with Exception of Auto Loans and Cards

Average debt levels for Canadians have remained consistent over the last two years. Average balances per consumer (excluding mortgages) moved from $21,379 in Q3 2014 to $21,247 in Q3 2015.

Almost every major city experienced a moderate yearly decline in their average balances per consumer, with Vancouver seeing the biggest drop -- from $25,312 to $24,358. Toronto saw a marginal decline with average balances moving from $20,462 in Q3 2014 to $20,317 in Q3 2015.

While total consumer debt dropped slightly, auto loans and credit cards experienced 3% annual increases in balances. "The auto sector continues to thrive, thanks in part to lower oil prices, so balance increases are expected in this industry," said Wang. "Credit card debt has risen to a two-year high. With the holiday shopping season around the corner, we are going to keep a close eye on how Q4 spending affects debt levels on credit cards."

 
Average Consumer Non-Mortgage Debt Levels
Credit Product  Debt at Q3 2014  Debt at Q3 2015  YoY Change
All Products  $21,379  $21,247  -0.62%
Auto Loans  $19,101  $19,649  2.87%
Credit Card  $3,634  $3,745  3.04%
Installment Loans  $22,361  $22,077  -1.27%
Lines of Credit  $30,596  $29,169  -4.66%
       

More information about the Q3 2015 TransUnion MarketTrends can be found here.

About TransUnion MarketTrends
TransUnion MarketTrends is an in-depth, full population-based solution that provides statistical information every quarter from TransUnion's national consumer credit database, aggregated from virtually every active credit file on record. Each file contains hundreds of credit variables that illustrate consumer credit usage and performance. By leveraging Market Trends, institutions across a variety of industries can analyze market dynamics over an entire business cycle, helping to understand consumer behaviour over time and across different geographic locations throughout Canada. Businesses can access more details about and subscribe to MarketTrends at transunioninsights.ca/MarketTrends.

About TransUnion (NYSE: TRU)
Information is a powerful thing. At TransUnion, we realize that. We are dedicated to finding innovative ways information can be used to help individuals make better and smarter decisions. We help uncover unique stories, trends and insights behind each data point, using historical information as well as alternative data sources. This allows a variety of markets and businesses to better manage risk and consumers to better manage their credit, personal information and identity. Today, TransUnion reaches consumers and businesses in more than 30 countries around the world on five continents. Based in Burlington, Ontario, TransUnion provides local service and support throughout Canada. Through the power of information, TransUnion is working to build stronger economies and families and safer communities worldwide. We call this Information for Good. Visit www.transunion.ca to learn more.

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