Research and Statistics

Credit card delinquencies rise but remain near historic lows


Cardholders have learned their lesson and pay down card debts, says the American Bankers Association

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Credit card delinquencies rise but remain near historic lows Olivier Le Moal/iStock /Getty Images Plus/Getty Images


Olivier Le Moal/iStock /Getty Images Plus/Getty Images


Consumers missed making their credit card payments slightly more often in the second quarter of 2016, but delinquencies remain near historic lows, according to an American Bankers Association report released Thursday.

Bank-issued card delinquencies increased to 2.48 percent of all accounts from 2.47 percent in the first quarter, the ABA said in its quarterly report on consumer loan delinquencies. The association defines a delinquency as a late payment that is at least 30 days overdue.

Credit card delinquencies remain well-below the average of 3.7 percent recorded over the past 15 years.

“Card-related delinquencies have remained remarkably low even as purchase volumes increase,” James Chessen, chief economist for the ABA, said in a statement. “Consumers have learned the lessons of the past and have taken a highly disciplined approach that allows them to consistently pay off or pay down debt.”

Cardholders have largely continued to make on-time payments despite rising card balances that could reach $1 trillion as early as January. A possible interest rate hike by the Federal Reserve in December could trip up some cardholders – approximately 92 million consumers would see their monthly payments rise after a rate hike.

Delinquencies for closed-end installment loans – including home equity, personal and auto loans – fell to a record low of 1.35 percent of all accounts in the second quarter. Home equity loan delinquencies fell from 2.74 percent to 2.70 percent, but there were slight increases in delinquencies for direct and indirect auto loans.

Bank card delinquencies infographic

See related: Credit card debt down across the board




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