NEW YORK -

Analysts for S&P Dow Jones Indices and Experian quickly tempered concerns about a negative payment environment developing even though the auto loan segment of the S&P/Experian Consumer Credit Default Indices ticked up slightly in August.

August’s default rate came in at 1 percent, marginally higher than the previous month’s reading of 0.96 percent. But on a year-over-year comparison, August’s level actually showed a slight decline as the index level a year ago stood at 1.11 percent.

The national composite rate — a comprehensive measure of changes in consumer credit defaults — moved up slightly to 1.03 percent in August, up 2 basis points from the previous month’s historical low.

After nine consecutive months of decline, the first mortgage default rate rose to 0.91 percent while the bank card rate declined 13 basis points to 2.73 percent.

Conversely, the second mortgage default rate dropped 1 basis point to a new historical low of 0.51 percent.

"With the recent and continued growth in the economy, sales of automobiles and existing homes have gained since the start of the year," said David Blitzer, managing director and chairman of the index committee for S&P Dow Jones Indices.

“These factors may be leading to more borrowing and modest increases in default rates. No return to the extreme default experience of a few years ago is imminent,” Blitzer continued.

“Consumer credit default rates rose for the first time since September 2013. Default rates are just above (July’s) historical lows. Auto and first mortgage showed slight increases while bank card continues to trend down,” he went on to say.

Looking at the top five metro areas analysts track for this monthly update, the default rates for Chicago and Dallas remained unchanged at 1.17 percent and 0.80 percent.

Meanwhile, the reading for New York came in at 1.07 percent, the lowest default rate for the Big Apple since July 2006.

“Miami saw its rate decrease to its lowest since August 2006 but still posted the highest default rate of 1.45 percent,” Blitzer said.

Los Angeles was the only city to see its rate increase and continues to maintain the lowest default rate,” he added “All five cities — Chicago, Dallas, Los Angeles, Miami and New York — remain below default rates seen a year ago.”

Jointly developed by S&P Indices and Experian, Blitzer reiterated the S&P/Experian Consumer Credit Default Indices are published monthly with the intent to accurately track the default experience of consumer balances in four key loan categories: auto, bankcard, first mortgage lien and second mortgage lien.

The indices are calculated based on data extracted from Experian’s consumer credit database. This database is populated with individual consumer loan and payment data submitted by lenders to Experian every month.

Experian’s base of data contributors includes leading banks and mortgage companies and covers approximately $11 trillion in outstanding loans sourced from 11,500 lenders.