Credit card charge-offs edged lower in February after hitting a six-month high in January, said Fitch Ratings, while delinquencies continued to ease.
However, it reiterated that the sector's woes are likely to continue as employment stays weak.
Charge-offs, or loans not expected to be recovered, among prime-rated customers fell 0.1 percentage point to 11.27% for the February reporting period, a 34% increase from a year earlier.
"U.S. consumer credit quality remains under considerable pressure, although the pace of deterioration has moderated in recent months," said Fitch Managing Director Michael Dean.
Meanwhile, the number of accounts at least 60 days behind fell 0.06 point to 4.44%, while the 30-day delinquency rate fell the same amount to 5.66%. While the 60-day rate has slid the past two months, it remains above 2009's average. Still, Fitch said the results "could provide an early insight to a possible recovery for charge-offs in the later months."
Also, the amount of monthly balances paid by customers fell 0.55 percentage point to 18.8%, which is still 19% higher than a year earlier.