NEW YORK — The default rate for auto loans declined 1.92 percent in October, the Standard & Poor’s/Experian Consumer Credit Default Indices revealed.

The S&P/Experian indices are a comprehensive measure of changes in consumer credit defaults. With data through October 2010, the indices showed a decline in monthly default rates for all credit lines, reported F&I and Showroom magazine.

First mortgages declined in October to 2.91 percent. Bank cards decreased slightly from 7.04 percent in September to 6.91 percent in October. Second mortgages had the largest decline in defaults this month, down 16.28 percent.

"Consumer credit default rates continued their decline across all major credit sectors and among all of the cities reported here. Bringing default incidence down to more normal levels is key step to increased credit use and further improvements in the economy. However, overall credit use through September, as reported by the Federal Reserve, shows that consumers are still reining in their borrowing," says David M. Blitzer, managing director and chairman of the index committee for Standard & Poor's. "The report is encouraging – declining consumer defaults should help restore confidence and spending as we enter the holiday season."

Consumer credit defaults varied across major cities and regions of the U.S. Among the five major metropolitan statistical areas reported each month in this release, New York had the largest monthly decrease in defaults, 12.51 percent, followed by Los Angeles which declined by 8.49 percent. Miami and Chicago experienced similar declines of 7.47 percent and 7.85 percent respectively. Dallas declined slightly month over month, by 0.51 percent.

The table below gives summary results for October 2010 for the S&P/Experian Credit Default Indices. These data are not seasonally adjusted and are not subject to revision.

The second table below provides the S&P/Experian Consumer Default Composite Indices for five selected metropolitan statistical areas: