Default Rate on Bank Credit Cards Lowest Since 2006

Default Rate on Bank Credit Cards Lowest Since 2006

January 17, 2013         Written By Bill Hardekopf

The default rate on bank credit cards dropped to its lowest level of the post-recession era in December.

According to the S&P/Experian Consumer Credit Default Indices, the default rate on bank credit cards declined to 3.53 percent, down from 3.58 percent in November.

This was the lowest default rate on bank credit cards since December 2006 when it reached 3.50 percent.

This default rate reached a recent high of 9.15 percent in April 2010 but has subsequently shown fairly steady decreases. The rate in December 2010 was 6.73 percent and 4.60 percent in December 2011.

Overall consumer credit default rates rose for third straight month after hitting a post-recession low in September of 1.36 percent. The overall number increased in December to 1.72 percent from 1.64 percent in November. This increase was mainly due to a rise in the default rate on mortgages which also increased for the third consecutive month, from 1.58 percent in November to 1.68 percent in December.

The information contained within this article was accurate as of January 17, 2013. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.


About Bill Hardekopf

Bill Hardekopf is the CEO of and covers the credit card industry from all perspectives. Bill has been involved with personal finance for over 15 years. He is a frequent contributor to Forbes, The Street and The Christian Science Monitor.
View all posts by Bill Hardekopf