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Credit Default Rates at Eight-Year Low

According to a recent survey released by S&P Dow Jones Indices and Experian, the national consumer credit default rates declined in May from April. This month, the national composite posted at 1.04 percent, making it the lowest default rate since 2006. While mortgage default rates decreased, both bank card and auto default rates showed an increase over April.

David. M. Blitzer, chairman, and director of the S&P Dow Jones Indices index committee noted, “Consumer credit default rates decreased for their seventh consecutive month. The national composite is now only one basis point above its historic low. Mortgage default rates saw the biggest decline when compared to auto and bank card rates.”

After hitting record low default rates in March and April, the auto loan rate increased by one basis point to 0.93 percent. The bank card default rate accelerated by 13 basis points over April to 2.97 percent.

“New York was the only city to see its default rate increase but it showed the largest drop-off from one year ago. Dallas posted a new historic low of 0.77% while Chicago, Los Angeles, and Miami are at their lowest default rates since the start of the last recession. Miami continues to maintain the highest default rate of 1.74% while Dallas maintains the lowest rate of 0.77%. All five cities – Chicago, Dallas, Los Angeles, Miami, and New York – remain below default rates seen a year ago,” continues Blitzer.

With credit rates fluctuating and the economy still on shaky ground, even well-run businesses are having a hard time finding and maintaining cash flow. At, we can provide your business with a reliable merchant cash advance. We can get one of our merchants funded within 5-10 business days. Our Merchant Cash Advance Program is our most popular form of business.

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The Merchant Cash Advance Program is managed by financial experts that look at your business’ total credit card processing revenue and gives you an advance based on a 3-6 month average.

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