The combined effects of tighter lender underwriting criteria and continued consumer discipline in keeping credit card accounts current drove the bankcard delinquency rate to new lows through the second quarter, according to data from the American Bankers Association.
The percentage of all bankcard accounts that were at least 30 days past due through June 30 was 3.22%, down 18 basis points from 3.4% through March 31, the association said in a Sept. 4 release.
The latest delinquency rate at the end of the second quarter was 40 basis points lower than 3.62%, where it stood a year earlier, and 179 basis points below its peak of 5.01% at the end of the second quarter of 2009, according to the association.
Bankcard delinquencies are now well below their average of 3.94% over the 15 years it has been tracking the data, the association said.
Delinquencies may be poised to begin rising again soon, however, according to Fitch Ratings Inc. economists.
U.S. consumer credit quality has improved rapidly since the beginning of the year, and delinquency trends bode well for further gains, Fitch managing director Michael Dean said in a recent report. Were at a point now, however, where seasonal factors will likely temper the pace of further collateral improvements for credit card asset-based securities.
