Bank card default rates lowered considerably in the month of August, according to a joint survey released by S&P Indices and Experian.
The report said that default rates decreased last month to 5.2 percent from 5.6 percent in July. First and second mortgage defaults remained flat, while auto loan defaults rose slightly to 1.3 percent from July's 1.2 percent
Despite the marginal increase in auto defaults, David Blitzer, managing director and chairman of the index committee for S&P, said the August numbers are positive.
"The overall picture is broadly optimistic," said Blitzer. "All indices show default rates well below where they were in the 2008/09 recession, and some are still falling."
The study also detailed the rate of default among the five major metropolitan statistical areas. Compared to July, defaults declined in Chicago, Dallas, Los Angeles and Miami. Consumer credit defaults remained the same in New York.
Consumers would be wise to keep an eye on their credit reports, making sure they're free of erroneous marks. Depending on the severity of the errors, these notations can lead to bad credit scores.