US credit card delinquencies are approaching a six-year low,
according to the latest Credit Card Index results from
Fitch Ratings.
The results show that 60+ day delinquencies
have declined for the 19th consecutive month, settling
at 2.15%, down by 31 basis points. Early stage delinquents,
borrowers who have missed at least one payment, have also declined
by 32 bps to 3.02%.
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Michael Dean, managing director of Fitch
Ratings said:
“US consumer credit quality has improved
rapidly since the beginning of the year and delinquency trends bode
well for further gains.”
However, seasonal factors are likely to slow
the pace of further collateral improvements for credit cards
asset-backed security, he added.
After posting the second largest monthly
decline since the Bankruptcy Reform Act went into effect in 2005,
credit card defaults went up eight bps leaving it at 6.41%.
This was driven by Citibank and Bank of America posting higher
losses from credit card defaults.
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By GlobalData
