Consumer Payment Card News

Payment Rates

Monthly payment rates for credit card-backed bonds soared to a new industry record during March, hitting 22%. The March figure was 270 basis points above February’s 19.4% and is only the second time the payment rate has topped 20%. According to Standard & Poor’s Ratings Services, each of the trusts that compose its “Credit Card Quality Index” reported higher payment rates during March, ranging from 60 bps to 930 bps. The monthly payment rate over the past 12 months has averaged 19.5%. During this period only one month, April, posted a rate lower than 18%. The higher payment rates have been primarily driven by higher minimum payments which were phased in during the fourth quarter of 2005 and the first quarter of this year.

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|_2. ABS Monthly Payment Rates |
|_. Mar 05: | 17.5% |
|_. Apr 05: | 17.7% |
|_. May 05: | 18.9% |
|_. Jun 05: | 18.9% |
|_. Jul 05: | 18.7% |
|_. Aug 05: | 18.6% |
|_. Sep 05: | 19.2% |
|_. Oct 05: | 19.0% |
|_. Nov 05: | 18.8% |
|_. Dec 05: | 19.7% |
|_. Jan 06: | 20.6% |
|_. Feb 06: | 19.4% |
|_. Mar 06: | 22.1% |
|_2. Source: Standard & Poor’s |

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