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Average credit card delinquency rates declined in all U.S. states during the second quarter ended June 30, marking the first such nationwide decline during the past year, TransUnion LLC says in a report released today. But TransUnion warns that the recent improvements in delinquency trends are not necessarily evidence of an economic turnaround. The Chicago-based credit bureau analyzed the data of 27 million anonymous U.S. borrowers representing 10% of credit-using consumers. The ratio of borrowers at least 90 days delinquent on bankcard payments fell to 1.17% during the quarter from 1.32% during the first quarter. The year-over-year national bankcard delinquency rate rose 12.5% during the second quarter from 1.04% compared with the same period a year ago. States with the highest 90-day credit card delinquency rates during the recent second quarter were Nevada (2.19%), Florida (1.64%) and Arizona (1.52%). The states with the lowest rates were North Dakota (0.69%), Alaska (0.71%) and South Dakota (0.77%). Average individual credit card debt was $5,719, down 0.99% from $5,776 during the first quarter but up 1.74% from $5,621 during the second quarter of 2008. Though credit card delinquency trends appear to be improving, it is too soon to declare a major turnaround, Ezra Becker, TransUnion director of consulting and strategy, said in a statement. "The recent change in delinquency may be more the result of seasonal fluctuations rather than a marked turnaround in nonpayment credit card behavior," he said, noting that credit card delinquency rates remain "well within" historical norms.
