Consumer Payment Card News

Cardholder Pulse

Based on credit bureau data, the ratio of bankcard borrowers 90 days or more delinquent on one or more of their bankcards in the first three months of 2009 rose 9%, compared to the last three months of 2008 and up 11%, compared to one-year ago. Meanwhile, the aggregate balance on all bank-issued credit cards for an individual bankcard borrower inched upward nationally 82 basis points to $5,776 from the previous quarter and 409 basis points, compared to the first quarter of
2008. TransUnion.com found that the steepest increases in average bankcard debt over the previous quarter occurred in Alabama (+5.6%), Mississippi (+5.4%) and Tennessee (+4.7%). Delinquency (90+ days) increased to 1.32% in the first quarter, compared to 1.19% one-year ago. Incidence of bank card delinquency was highest in Nevada (2.44%), followed closely by Florida (1.9%) and Arizona (1.68%). The current TransUnion forecast for the national 90-day bankcard delinquency rate is a continued rise throughout 2009, approaching 1.7% by year-end. According to CardWeb.com’s CardData (www.carddata.com), Chase posted a 3.22% delinquency (90 day+) rate in the first quarter as BofA reported a 3.99% ratio, Citi a 2.71% ratio and Discover a 2.78% ratio.

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