States that are heavily dependent on energy companies for jobs are starting to feel the pinch of lower energy prices, according to data released today by TransUnion.
The serious delinquency rate for auto loans and credit cards jumped by double digits in Oklahoma, Louisiana, North Dakota, West Virginia, and Texas between the fourth quarter of 2015 and the same period of 2014. Nationwide, the serious delinquency rate – which indicates when consumers are 60 days past due on their payments – jumped 6.4% for auto loans and 6.9% for credit cards during the same period.
Mortgage delinquency rates, TransUnion noted, declined in all of those states as well as across the country.
“We also believe lower energy prices and the resulting job losses in energy-dependent markets have played some role in delinquency rates. Even so, that impact appears at this point to be localized, and mild in terms of national effect,” said Ezra Becker, vice president of research and consulting in TransUnion’s financial services business unit, in a release.
At the end of 2015, there were 1.26 million more subprime borrowers with credit cards that had a balance and 1.21 million more subprime borrowers with auto loans, according to TransUnion.
The number of consumers with auto loans topped 75.6 million, up from 70 million at the end of 2014 — the largest annual increase since TransUnion began tracking the data. The delinquency rate on auto loans rose 6%, to 1.24%, which is the highest the delinquency rate on auto loans has been in five years.
More consumers of all credit scores are taking out personal loans, according to TransUnion. There were 6.4 million personal loans originated in the third quarter of 2015, up from 5.92 million a year earlier.
