BACK

Research and Statistics

Card delinquency hits 15-year low

Summary

It’s another sign of U.S. consumers’ improving finances

The editorial content below is based solely on the objective assessment of our writers and is not driven by advertising dollars. However, we may receive compensation when you click on links to products from our partners. Learn more about our advertising policy.

The content on this page is accurate as of the posting date; however, some of the offers mentioned may have expired. Please see the bank’s website for the most current version of card offers; and please review our list of best credit cards, or use our CardMatch™ tool to find cards matched to your needs.

In another sign of improving finances  for American consumers, credit card delinquency rates dropped to their lowest level in 15 years, according to the New York Federal Reserve’s latest report.

The percentage of credit card balances that are delinquent 90 days or more registered at 7.08 percent for 2016’s third quarter, which is the lowest rate since late 2001. It’s also the fifth consecutive quarterly drop, steadily sinking the rate from the 8.39 percent seen just 16 months ago.

See related: How late payments get reported to credit bureaus

As the recession took hold in 2008, card delinquency rates hovered in the 9 to 10 percent range. But 2009 saw the rate skyrocket every quarter until it reached a high of 13.74 percent in mid-2010.

In the 25 quarterly reports since the peak, the rate has dropped all but four times, to where the latest reading almost brings the percentage down to half the peak rate.

Among the four major types of consumer debt – credit card, mortgage, auto loan and student loan – delinquency rates had historically been highest for credit cards, indicating that when consumers hit tough financial times, card balances are typically the first debt they stop paying. But in late 2012, delinquencies for student loans surpassed those for card debt, and have since remained the highest delinquency rate.

The Federal Reserve Bank of New York’s Quarterly Report on Household Debt and Credit draws its findings from Equifax credit-report data on a nationally representative 5 percent random sample of 44 million individuals who have a social security number and a credit report (usually age 19 and over). The latest quarterly report was released Nov. 30, 2016.

To use the graphic on your site, use the following code:

 <center><a href=”http://www.creditcards.com/credit-card-news/lowest-card-delinquency-15-years.php”><img alt=”CreditCards.com infographic: Card delinquency hits 15-year low” border=”0″ src=”http://www.creditcards.com/credit-card-news/images/card-delinquency-15-yr-low.png” /></a> </center>

What’s up next?

In Research and Statistics

Average credit score climbs in Experian study

The average U.S. consumer credit score climbed 4 points over the past year despite higher debt levels – including a big jump in credit card debt – according to a study released by Experian.

Published: November 30, 2016

See more stories
Credit Card Rate Report Updated: August 14th, 2019
Business
15.55%
Airline
17.50%
Cash Back
17.63%
Reward
17.50%
Student
17.69%

Questions or comments?

Contact us

Editorial corrections policies

Learn more

Join the Discussion

We encourage an active and insightful conversation among our users. Please help us keep our community civil and respectful. For your safety, do not disclose confidential or personal information such as bank account numbers or social security numbers. Anything you post may be disclosed, published, transmitted or reused.

The editorial content on CreditCards.com is not sponsored by any bank or credit card issuer. The journalists in the editorial department are separate from the company’s business operations. The comments posted below are not provided, reviewed or approved by any company mentioned in our editorial content. Additionally, any companies mentioned in the content do not assume responsibility to ensure that all posts and/or questions are answered.