Consumer Payment Card News

May Payment Rates

After hitting the stratosphere in April, monthly payment rates on credit card-backed bonds came back to earth in May. Payment rates, the amount that cardholders pay toward outstandings each month, climbed to a record 18.52% in April before dropping 134 basis points last month. However, the trend is still upward as the MPR is tracking 42 basis points above year-ago levels. According to FitchRatings, the monthly payment rate among prime issuers was 17.18% in May and 16.76% one-year ago. The increase in MPR over the past year has been attributed to cardholder behavioral changes and debt consolidation via home equity loans.

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|_2. MONTHLY PAYMENT RATES |
|_2. (Prime Credit Card-Backed ABS) |
|_. Apr 04:| 16.76% |
|_. Dec 04:| 17.09% |
|_. Jan 05:| 17.70% |
|_. Feb 05:| 17.64% |
|_. Mar 05:| 16.32% |
|_. Apr 05:| 18.52% |
|_. May 05:| 17.18% |
|_2. Source: FitchRatings |

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