Credit Card Delinquencies Increase for Five Major Issuers
In September, delinquencies for five major credit card issuers increased from their near-historic lows.
Bank of America, American Express, Chase, Discover and Capital One all showed slight increases from August to September in their delinquency rate. A delinquent account is any credit card account that is 30 or more days overdue.
Delinquency rates reached highs during the financial crisis of 2008. But the rate has dropped significantly as consumers became more prudent about charging on their credit cards, and lenders tightened approval criteria for new credit card accounts and closed risky accounts.
The increase in delinquency rates corresponds with the August and September increase in retail sales.
Here are the current delinquency and charge-off rates for the major credit card issuers:
- Bank of America delinquency rate increased to 3.15 percent in September, up from 3.11 percent in August. The charge-off rate dropped from 4.94 percent in August to 4.51 percent in September.
- American Express delinquency rate increased to 1.3 percent in September, up from 1.2 percent in August. The charge-off rate dropped from 2 percent in August to 1.9 percent in September.
- Chase delinquency rate increased to 1.97 percent in September, up from 1.92 percent in August. The charge-off rate dropped from 3.61 percent in August to 3.54 percent in September.
- Discover delinquency rate increased to 1.82 percent in September, up from 1.79 percent in August. The charge-off remained at 2.19 percent.
- Capital One delinquency rate increased to 3.52 percent in September, up from 3.37 percent in August. The charge-off rate jumped from 2.58 percent in August to 3.93 percent in September.
- Citi charge-off rate dropped from 4.71 percent in August to 4.15 percent in September.