According to a report by Standard & Poor's and Experian, many credit default rates experienced declines during July, including bank card default rates, which dropped nearly 6 percent.
The S&P/Experian Consumer Credit Default Indices show the number of bank card defaults fell 5.64 percent. Additionally, first and second mortgage default rates slid month-to-month, decreasing 1.93 and 0.15 percent, respectively. The national auto loan default rate slid the least on a monthly basis, dipping from 1.29 percent in June to 1.27 percent in July.
Overall, the Composite Index finished the month at 2.06 – slightly lower than the reading of 2.14 in June and substantially below the index of 3.42 from July 2010.
"By and large, July's data support the downward trend we have observed over the past two years. Despite high unemployment rates, consumers continue to improve their financial positions, resulting in lower default rates than we were seeing during the recession," said David M. Blitzer, managing director and chairman of the Index Committee for S&P Indices.
Consumers who feel they need to fix their credit report to obtain a loan for a home, car or other purchase may want to consult a credit repair service that can help them confront questionable credit report items.