Major Credit Card Issuers Report Increase in Delinquencies
Credit card delinquencies, defined as payments late by at least 30 days, increased slightly for five of the top six card issuers in September. While these increases were relatively small, it broke the trend of declining delinquency rates that the industry had recently experienced. It could be a signal that consumers are again struggling to pay down credit card debt and are a higher risk for default in the future.
The growth in late payments may lead banks to set aside more money to prepare for future losses.
On a positive note, all six major credit card issuers reported further declines in the default or charge-off rates.
Here are the September results for the top six credit card issuers:
The delinquency rate increased to 1.5% in September from 1.4% in August. The charge-off rate was 2.3%, down from 2.7%.
The delinquency rate increased to 3.65% in September from 3.43% in August. The charge-offs dropped to 3.9% from 4.1%.
Bank of America
The delinquency rate increased to 3.99% in September from 3.96% in August. The charge-off rate dropped to 5.99% from 6.79%.
The delinquency rate increased to 2.53% in September from 2.48% in August. The charge-off rate fell to 4.13% from 4.67%
The delinquency rate increased to 2.5% in September from 2.49% in August. The charge-off rate fell to 3.17% from 3.6%.
The delinquency rate fell to 3.3% in September from 3.35% in August. The charge-off rate fell to 5.87%, down from 6.92%.