Credit Cards Blog

Finance Blogs » Credit Cards » Credit card delinquencies drop

Credit card delinquencies drop

By Leslie McFadden ·
Monday, May 17, 2010
Posted: 1 pm ET

Fewer consumers are paying their credit card bills late, and balances across the nation are shrinking.

The national credit card delinquency rate decreased in the first quarter and credit card debt declined for the fourth consecutive quarter, according to trend data from TransUnion. The ratio of borrowers that were at least 90 days behind with their credit card payments slid to 1.1 percent, a 8.3 percent drop from the previous quarter.

"Based on revised economic assumptions, which are now more optimistic than before, TransUnion believes that the 90-day credit card delinquency rate, apart from seasonal ups and downs, will likely continue to decrease in 2010, possibly dropping below 1 percent by year end," Ezra Becker, director of consulting and strategy in TransUnion's financial services business unit, stated in a press release.

Average total credit card debt owed per borrower fell 4.95 percent from the previous quarter to $5,165, and 10.57 percent year over year.

Only two states saw an increase in credit card delinquencies -- Arkansas and Alaska -- and overall, Nevada, Florida and Arizona had the highest delinquency rate. North Dakota, South Dakota and Alaska had the lowest incidence of delinquencies.

Zero states showed an uptick in average credit card debt. Alaska had the highest state average at $7,135, and Tennessee and Alabama followed closely behind. At the other end of the spectrum, Iowa owed the least on credit cards, at $3,872, and North Dakota and South Dakota followed with the next lowest state averages.

How does your debt total compare with the rest of America? Use our pay-down calculator to figure out how long it will take to eliminate your debt.

Follow Leslie McFadden on Twitter.

Bankrate wants to hear from you and encourages comments. We ask that you stay on topic, respect other people's opinions, and avoid profanity, offensive statements, and illegal content. Please keep in mind that we reserve the right to (but are not obligated to) edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused.

By submitting a post, you agree to be bound by Bankrate's terms of use. Please refer to Bankrate's privacy policy for more information regarding Bankrate's privacy practices.
Chuck Harper
May 23, 2010 at 1:11 pm

I have found that it pays to buy everything and I mean everything on a good Credit card ( I use Chase freedom). But: only if you have the ability and the will power to pay the card off by the payment date every month. The average person can earn $500 to $1000. a year. Chase pays $250. when you wait till you have $200 available. No scam, they send you a check for $250 in the mail.

They pay 1-3 % pack in this manner. Figure up how much you spend in one month on everything you could pay on a card and multiply by an 2% and don't forger to add on any bills that will except a card. Also don't gorget the extra $50 for drawing when you reach $200.

See what yo could be pulling from the credit card company for a change.


Chuck Harper
May 21, 2010 at 1:54 pm

Good day,

Don't know if this is the place for it but thought I'd mention this. The American Express Gold card being offered on TV with 10,000 points(about $100.) on first purchase has a "Fine print" clause. The points aren’t offered if you already have any American Express credit card.

In the past you were only disqualified if you had exactly the same card. I offer this because there has been a decline in cards with these kind of perks.

I have been lucky enough to be in a position where my credit score has no meaning me. I've taken advantage of these offers to as much as a $1,000, merchandise & $$$, in a year.

I don't recommend this game to anyone unless they are sure the balance can be paid off with the first bill and then close the account. However, if you know how to play the game, you can beat the credit card company.

Good blog, good day;
Chuck H.