Credit Card Delinquencies Reach 11-Year Low
More Americans are making their credit card payments on time.
Credit card delinquencies fell to 2.93 percent in the second quarter, the lowest level since 2001, according to the American Bankers Association. This marks the first time the rate has been below 3 percent in that 11-year period. The rate is down from 3.08 percent in the first quarter.
A delinquent account is any credit card account that is 30 or more days overdue.
Paying their bills on time means cardholders are more financially prudent, avoiding late fee charges. It may also be an indication that consumers are in better financial shape as the holiday shopping season begins, a time when spending and debt usually increases.
Meanwhile, delinquencies rose on home improvement loans, home equity loans and home equity lines of credit.