Bank Card Delinquencies Fall in Third Quarter

Bank card delinquencies fell in the third quarter of 2019, while rising in several closed-end loan categories, according to the American Bankers Association’s Consumer Credit Delinquency Bulletin released today. The composite ratio, which tracks delinquencies in eight closed-end installment loan categories (direct and indirect auto, home equity, marine, mobile home, personal, property improvement and RV loans) rose to 2.03% of all accounts, remaining below the pre-recession average of 2.09%.

“It’s not unusual to see delinquencies slowly return to average levels given that they have remained so low for so long,” said ABA chief economist James Chessen. “The outlook remains positive as a solid job market and rising wages continue to provide a strong foundation for consumers to meet their debt obligations.”

Delinquencies were up in eight of the 11 categories tracked by ABA, while falling in three. Among the open-ended loan types tracked, bank card delinquencies fell two basis points to 2.96% of all accounts, remaining far below the pre-recession average of 4.33%. Meanwhile, non-card revolving loan delinquencies fell from 1.71% to 1.65%. Delinquencies on home equity lines of credit ticked up from 1.06% to 1.07%.