The nation’s credit risk level climbed to its highest level in a decade
during the second quarter. However, the good news is the rate of
increase is slowing as the general lending environment remains stagnant.
The TransUnion “Credit Risk Index,” which measures the change in average
consumer credit risk within various geographies rose to 128.32 for the
second quarter, compared to 127.26 in the first quarter and 120.89 for
2Q/08. The rate of increase between the first and second quarters was
the lowest since 2006, when the nation experienced a 3.35% decline from
115.37 to 111.51. The states that experienced the largest quarterly
increases included Florida (2.67%), Oregon (2.65%) and Nevada (2.37%).
Of the states experiencing quarterly decreases, Delaware (-0.80%), New
Mexico (-0.62%) and Montana (-0.60%) led the way. On a year-over-year
basis, four states had double digit increases in the CRI, including
Nevada (13.20%), Arizona (12.49%), California (12.47%) and Florida
CREDIT RISK INDEX