US Credit-Card Delinquency Rates
US credit-card delinquency rates hit record high in the fourth quarter, with almost 3.5% of card balances at least 30 days past due. The share of debts that are 60 and 90 days late also increased. Many consumers are stretching credit lines further amid added pressure on household finances. Credit scores for some cardholders have decreased, indicating potential performance deterioration.
Key Points
- Almost 3.5% of card balances were at least 30 days past due in the fourth quarter
- Credit scores at the 10th and 25th percentiles of cardholders decreased, signaling potential performance deterioration
- Credit card utilization and nominal balances set new series highs
Pros
- Highlights the current state of credit-card delinquency rates in the US
- Provides insights into the financial stress faced by cardholders
Cons
- High delinquency rates may indicate financial instability for some consumers
- Potential future deterioration in cardholder performance