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U.S. credit card performance in October was mixed as consumers continue to endure high unemployment rates and a lack of credit availability, according to Fitch Ratings' Prime Credit Card Index results released last week. Charge-offs on prime credit card portfolios fell to 10.75% of outstanding receivables, 77 basis points lower than the previous month's 11.52%. "U.S. consumer credit quality measures remain pressured, and charge-offs will stay high until we see some improvement in employment conditions and in delinquency trends," Michael Dean, Fitch Ratings managing director, said in the report. Delinquencies in excess of 60 days reversed their downward trend in October, increasing to 4.22%, 16 basis points higher than September's rate of 4.06%. "While somewhat seasonal, the rise in delinquencies provides further evidence that charge-offs will remain elevated in the coming months," said Cynthia Ullrich, Fitch Ratings senior director.
