Payment Card News

Delinquency Tumbles

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Credit card delinquencies continue to decline this year. Second quarter credit card delinquencies based on total dollars outstanding fell to 4.08% from the previous quarter’s 4.50% level but below the 4.13% level reported one year ago. The American Bankers Association says that even though delinquent credit card accounts edged up slightly, the good news is that the balances on those accounts dropped sharply and are at their lowest level in nearly two years. The composite ratio of closed-end installment loans 30 days or more past due also rose, to 2.17% of all accounts from 2.10% in the first quarter. The composite ratio tracks eight closed-end consumer installment loans including auto, home equity and personal loans. Late payments on home equity lines of credit decreased from 0.64% in the first quarter to 0.58% in the second quarter.

  2Q CREDIT CARD DELINQUENCY HISTORY (based on total dollars outstanding)

2002: 4.08%   1998: 4.57%   1994: 3.06%   1990: 3.46%   1986: 3.83%   1982: 3.03%
2001: 4.13%   1997: 5.24%   1993: 3.86%   1989: 3.06%   1985: 2.88%   1981: 2.86%
2000: 3.54%   1996: 4.61%   1992: 4.19%   1988: 3.44%   1984: 2.80%   1980: 3.25%
1999: 4.10%   1995: 3.58%   1991: 4.48%   1987: 3.28%   1983: 2.81%

      Source: American Bankers Association Delinquency Bulletin

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