Average Balances Per Account Increase Again for Third Quarter 1999; Trans Union Releases Quarterly Aggregate Consumer Credit Information from its Advanced New TrenData Database.

CHICAGO--(BUSINESS WIRE)--Dec. 6, 1999--

The average balance per account increased again during the third quarter of this year, while credit delinquency rates fell slightly for the same period, according to an analysis issued today by Trans Union LLC. The report is based on consumer credit information gathered from TrenData(R), Trans Union's advanced new database of aggregated time series credit bureau information.

According to the report, average credit balances per active account continued to grow in the third quarter of 1999 for all types of consumer credit. Compared to the previous year, average mortgage balances grew by 5.9 percent, average installment balances by 3.8 percent, and average revolving balances increased by 5.3 percent.

Consumers consolidated their revolving account usage in the second and third quarters of this year; however, the rate of consolidation flattened in the third quarter. The average number of actively used revolving accounts per consumer that actively uses revolving credit was 0.27 accounts lower in the third quarter of this year, compared to last year. In the second quarter, the average number of actively used revolving accounts per active user of revolving credit fell by 0.31 accounts versus last year.

The TrenData report also showed that 30+ day borrower delinquency rates were roughly the same in the third quarter of this year for mortgage and installment credit, compared to the third quarter of 1998. The mortgage delinquency rate was one basis point lower in the third quarter of 1999, compared to last year, and the installment delinquency rate was six basis points higher. The revolving credit delinquency rate, on the other hand, fell by 65 basis points compared to last year.

The TrenData database consists of quarterly snapshots of 24 million consumers randomly sampled from Trans Union's national consumer credit database. The database contains 360+ credit variables that illustrate consumer credit usage and performance. Data aggregations are available at the county, Metropolitan Statistical Area (MSA), state, and the national levels. TrenData's time series originate from first quarter 1992, and subsequent quarterly samples are available within 45 days of the close of a quarter.

Trans Union intends to update this report quarterly, approximately five and one-half weeks after the end of each quarter. Trans Union will post the release schedule, historical data, and each quarter's report on the TrenData Internet site, http://www.trendatatu.com.

Trans Union is one of the nation's leading consumer credit information companies with owned and independent credit bureaus in all 50 states. The company provides a broad range of industries with products and services, including credit reports, risk scoring models, target marketing systems, pre-employment evaluation reports, skip tracing and search tools, and customized lists, as well as products that service both equity and first mortgage lenders and other information-based products.

For more information contact Trans Union LLC at [phone] or visit the company's Web site: http://www.transunion.com or TrenData's site: http://www.trendatatu.com.

                              Data Tables

Note: Data are not seasonally adjusted.

Average Balance per Active Account
----------------------------------

            All Credit      Mortgage    Installment      Revolving
            ----------      --------    -----------      ---------


Q2 1998         $7,810       $83,070        $10,870         $1,130
Q3 1998         $7,850       $83,160        $10,510         $1,130
Q2 1999         $8,670       $87,280        $10,750         $1,150
Q3 1999         $8,700       $88,080        $10,910         $1,190

Average Number Active Accounts per Consumer that Actively Uses Given
--------------------------------------------------------------------
Credit Type
-----------
            All Credit      Mortgage    Installment      Revolving
            ----------      --------    -----------      ---------


Q2 1998           5.46          1.18           1.70           4.60
Q3 1998           5.44          1.18           1.70           4.56
Q2 1999           5.22          1.20           1.71           4.29
Q3 1999           5.21          1.19           1.72           4.29

Average Number Active Accounts per Consumer with Active Credit File
-------------------------------------------------------------------


            All Credit      Mortgage    Installment      Revolving
            ----------      --------    -----------      ---------




Q2 1998           5.46          0.36           0.74           4.10
Q3 1998           5.44          0.36           0.74           4.06
Q2 1999           5.22          0.37           0.75           3.82
Q3 1999           5.21          0.37           0.76           3.81

Market Penetration
------------------
(Percent of Consumers with Active Credit Files that Have at Least 1
Active Account of Given Credit Type)


            All Credit      Mortgage    Installment      Revolving
            ----------      --------    -----------      ---------
Q2 1998          (100%         30.3%          43.5%          89.2%
Q3 1998             by         30.6%          43.8%          89.2%
Q2 1999          defi-         31.1%          44.0%          88.9%
Q3 1999        nition)         30.8%          44.5%          88.8%

30+ Day Borrower Delinquency Rates
----------------------------------
(Percent of Active Users of Given Credit Type Currently 30 or More
Days Delinquent on at Least One Account of
Given Type)

            All Credit      Mortgage    Installment      Revolving
            ----------      --------    -----------      ---------

Q2 1998           n.a.         2.83%          6.95%          5.31%
Q3 1998           n.a.         2.85%          6.86%          5.55%
Q2 1999          8.62%         2.68%          6.49%          4.80%
Q3 1999          9.58%         2.84%          6.92%          4.91%

Consumers with Delinquent Payments in their Credit Histories
------------------------------------------------------------
Consumers With Active Credit Files Who...

        Have Been 30 or More Days         Have Been 60 or More Days
         Delinquent on at Least 1          Delinquent on at Least 1
         Account Sometime in the           Account Sometime in the
             Last 4 Years                      Last 4 Years
        -------------------------         -------------------------

Q2 1998             51.4%                            37.0%
Q3 1998             51.7%                            37.3%
Q2 1999             50.8%                            36.6%
Q3 1999             50.8%                            36.6%

Explanation of Terms and Concepts

1) Active Accounts

A mortgage or installment account is "active" if the account has an outstanding balance and has been verified by the lender in the last 12 months. A revolving account is "active" if the account has some type of activity reported by the lender in the last 12 months. Revolving accounts do not necessarily have to have an outstanding balance to be classified as active.

2) Consumers with Active Credit Files

A consumer has an active credit file if he or she has at least one active account. Consumers having only derogatory public records, collection actions, or employment inquiries are not considered to have "active" credit files.

3) Consumers that Actively Use a Type of Credit

A consumer is an "active" user of a given credit type if he or she has at least one active account of that type on his or her credit file, regardless of whether or not the account is a joint account.

4) Installment Credit

We use "installment credit" as an abbreviation for non-mortgage installment credit throughout this report. This credit category includes credit extended for a given amount that consumers must repay over a set period of time, other than mortgage credit. Examples include auto loans and many loans extended by sellers of durable consumer products. Installment credit accounts for about 20% of consumers' outstanding debt.

5) Mortgage Credit

This category includes credit secured by residential real estate. Mortgage debt comprises about 70% of consumers' outstanding debt.

6) Other Credit

There is a small amount of credit that is not secured by residential real estate and that is neither installment credit nor revolving credit. An example is open credit extended by retailers. We do not include data on this type of credit in this report. Other credit is responsible for less than one-half of one percent of consumers' total debt.

7) Revolving Credit

This credit category includes credit that the consumer can repay over a number of periods and for which the amount of credit is not pre-determined. Of course, credit limits generally restrict the maximum amount a consumer can borrow. Examples include bank credit cards and credit cards issued by retailers. Revolving credit is about 10% of consumers' outstanding debt.

8) Treatment of Joint Accounts

We consider a joint account to belong to all the individuals on the account. For example, if two consumers hold a joint mortgage, both consumers are considered to have a mortgage for purposes of calculating market penetration data and data on the average number of accounts.

Therefore, users of this report should not attempt to find the average balance per user of a credit type by multiplying the average number of active accounts by the average balance outstanding per active account. Doing so will overstate consumers' average balances. For example, a joint mortgage with a $100,000 balance held by two borrowers does not result in a total of $200,000 in debt.

9) Use of Phrase "Consumer Credit"

The Federal Reserve Bank uses the phrase "consumer credit" to refer to non-mortgage credit held by consumers. In this publication, Trans Union uses the phrase "consumer credit" to refer to all credit, including mortgages, held by consumers. In our publications for more specialized audiences, Trans Union follows the technical usage of the Federal Reserve Bank and other experts.

Copyright Permission

The data in this report and the related historical numbers on our Internet site may be used and quoted freely, as long as the source is identified as "Trans Union LLC's TrenData(R)". Trans Union reserves all other rights.