Credit Card Delinquencies Fall
A recent report by TransUnion showed the rate of credit card delinquencies are at their lowest point since 1996.
The national credit card 90-day delinquency rate for consumers with at least one card in delinquency fell to 0.74 percent during the first quarter of 2011. This is almost a 10 percent drop from the fourth quarter of 2010, where the rate was at 0.82 percent. In addition, the rate is more than 30 percent lower than one year ago, when it was 1.11 percent.
The rate has not been this low since the third quarter of 1996, when delinquencies were at 0.76 percent.
"Two big reasons for the decrease in credit card delinquency are that consumers continue to deleverage, and lenders are still conservative in how they extend new card credit," said Ezra Becker, vice president of research and consulting for TransUnion's financial services business unit.
The drop in 90-day delinquencies may be a sign that cardholders are beginning to get a handle on their credit card debt. This is also positive news for the economy, as consumer confidence begins to rise, the economy may get stronger.