TransUnion Study | Sample of 4 million consumers reveals 39.1% were delinquent on a mortgage

TransUnion Payment Hierarchy Study Finds Consumers Paying Auto Loans Before Credit Cards and Mortgages

The TransUnion analysis looked at a sample of approximately 4 million consumers in each quarter of 2011 that had at least one open auto loan and one open bankcard and one open mortgage. The study found in each quarter that there was a clear preference for remaining current on auto loans, ahead of credit cards and mortgages. Specifically, of the consumers who were delinquent on any of these products:

  • 9.5% were delinquent on an auto loan while current on their credit cards and mortgages
  • 17.3% were delinquent on a credit card while current on their auto loans and mortgages
  • 39.1% were delinquent on a mortgage while current on their auto loans and credit cards

“In other words, the auto loan is seldom the first choice when a consumer has to decide which payment to miss. A few reasons why auto loans have become the preferred payment to make include the need for an auto to get to work or look for employment, and the fact that an auto loan is not a revolving loan — the impact of repossession is greater than the loss of a credit card,” added Becker. “In addition, consumers may have equity in their autos after several years of payments that they are looking to preserve — which is no longer the case for most homes. In fact, negative equity has become increasingly common for homes, which may further contribute to the shift in payment preference to auto loans.”

Full report here…


One Response to “TransUnion Study | Sample of 4 million consumers reveals 39.1% were delinquent on a mortgage”
  1. Ali says:

    Transunion failed to admit their complicity in this matter. It is against the law to not report a mortgage broker or bank for that matter who takes out multible loans on one property. The FBI calls that “Shotgunning”. And where were they, approving people for loans that they knew could not afford, that anyone could not afford. How dare they try to put the blame on other people when they have their share of the pie to eat, humble pie that is. They are no longer a credible reporting agency in my eyes and I am sure not in a lot of others. If I am such a “deadbeat, why is my mailbox full of offers from credit card co’s and banks. Guess if they can’t get theur grimey hands on my house they’ll try something else, like get me to run up credit card accounts I can’t afford!
    Fool me once……

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