Global Credit Trends for the First Half of 2024
THE EQUIFAX TEAM OF GLOBAL EXPERTS COMPILE ANALYSIS AND INSIGHTS ON KEY INDICATORS such as fraud, demand, mortgage and more. Check out the top trends of the first half of 2024 to help make sense of interconnected global economic trends.
THE TOP THREE TRENDS DURING THE FIRST HALF OF 2024 ACROSS THE GLOBE:
Increased digital activity leads to increased fraud risk
As digital interactions continue to increase, so do fraud vectors, including Synthetic Identity Fraud. In the United States, the number of credit applications for auto loans tagged with having a risk of Synthetic IDs increased from ~5% in 2019 to above 8% in 2023. Overall, credit applications with a Synthetic ID risk have a delinquency rate 3 to 5 times higher vs the portfolio average.
Economic pressures impact young adults
In Canada, the high cost of living and increased cost of credit are affecting young adults at a greater rate. Consumers under 36 years of age are particularly impacted with high auto loans and lines of credit delinquency rates. Plus, a growing number of young Canadians are finding themselves living with their parents and grandparents. Currently, almost one in three Canadian households (29.2%) include adult children living with their parents, up from 26.7% a decade ago.
Younger consumers more susceptible to holiday spending hiccups
In Australia, credit cards issued in Q4 have shown a higher rate of delinquency over the past two years, compared to cards issued in other quarters. This trend coincides with increased demand for credit cards since 2022, driven by inflation and economic challenges. Young consumers are more likely to both use unsecured credit for holiday spending and fall behind on payments; the credit card delinquency rate for 18-25 year olds opening accounts in Q4 is 2x the rate for consumers aged 36-50.