Consumer Payment Card News

U.S. Card Delinquency Rages Upward Topping 2013

U.S. Card Delinquency

U.S. card delinquency among the Top 100 U.S. issuing banks gained another five basis points (bps) in the first three months of 2019. With solid economic growth, low unemployment and rising consumer confidence it is illogical why Americans are falling behind in their credit card payments.

However, with interest rates still historically low, overly confident consumers may have loaded up with easy credit, biting off more than can chew, says Robert McKinley, Senior Analyst for CardTrak, CardFlash and CardData. McKinley notes the explosion in the issuance of sub-prime credit cards to consumers with credit scores below 660, and the possibility of rising unemployment in late 2019 and through 2020, is especially concerning to U.S. issuers.

Major credit card issuers have begun to tighten underwriting and boosting loan-loss reserves, according to RAM Research.

Top 100 U.S. Credit Card Delinquency

The 30+ day delinquency rate, seasonally adjusted (SA), among the top 100 U.S. banks for the first-quarter (1Q/19) increased five bps from the prior quarter, and up six bps year-on-year (YOY).

On a not seasonally adjusted basis (NSA), the delinquency rate among the top 100 U.S. banks for 1Q/19, decreased three bps in 1Q/19, but up seven bps YOY.

Both measurements, SA and NSA, are the highest since the first-quarter of 2013, according to figures released today by the Federal Reserve.

According to the Federal Reserve, the top 100 U.S. banks posted a 30+ day SA delinquency rate of 2.59% for 1Q/19, compared to 2.54% in 4Q/18, and 2.53% for 1Q/18.

On a NSA basis the top 100 U.S. banks posted a 30+ day delinquency rate of 2.55% for 1Q/19, compared to 2.58% in 4Q/18, and 2.48% for 1Q/18.

Top 4 U.S. Credit Card Delinquency

Early stage credit card delinquency (30+ days) for the first-quarter (1Q/19), among the nation’s Top 4 issuers, decreased 4 basis points (bps) sequentially, and rose 12 bps year-on-year (YOY).

According to CardData, the average rate among the Top 4 issuers (Chase [JPM], Capital One [COF], Bank of America [BAC], Citibank [C]) was 2.36% for 1Q/19, compared to 2.40% for 4Q/18 and 2.24% for 1Q/18.
For the first-quarter of 2015, the Top 4 reported a U.S. credit card delinquency rate of 1.96%.

Top 100 U.S. Credit Card Delinquency

(Seasonally Adjusted)

1Q/15: 2.12%
2Q/15: 2.12%
3Q/15: 2.15%
4Q/15: 2.15%
1Q/16: 2.15%
2Q/16: 2.21%
3Q/16: 2.29%
4Q/16: 2.36%
1Q/17: 2.42%
2Q/17: 2.48%
3Q/17: 2.53%
4Q/17: 2.48%
1Q/18: 2.53%
2Q/18: 2.48%
3Q/18: 2.50%
4Q/18: 2.54%
1Q/19: 2.59%

Not Seasonally Adjusted

1Q/15: 2.08%
2Q/15: 1.95%
3Q/15: 2.11%
4Q/15: 2.21%
1Q/16: 2.14%
2Q/16: 2.06%
3Q/16: 2.30%
4Q/16: 2.41%
1Q/17: 2.39%
2Q/17: 2.31%
3Q/17: 2.52%
4Q/17: 2.51%
1Q/18: 2.48%
2Q/18: 2.29%
3Q/18: 2.48%
4Q/18: 2.58%
1Q/19: 2.55%

Additional Current & Historical, Quarterly. Top 100 30+ Day Delinquency Data

All Figures Updated and Revised as of 05/21/19

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Source: Federal Reserve; RAM Research; CardData; CardTrak; CardFlash; Chase; Bank of America; Citibank; Capital One