CHICAGO – More consumers are making their credit card payments on time, as the delinquency rate on credit cards dropped in the second quarter to one of its lowest levels since 1994, TransUnion reported.
The credit bureau also reported that the percentage of credit card borrowers at least 90 days past due dropped to 0.63% in second quarter 2012, compared with 0.73% in first quarter. The delinquency rate is at its lowest level since the second quarter of last year, when it was 0.60%. Prior to second quarter 2011, the last time the delinquency rate was below its current level was 1994.
“These low delinquency rates reflect both continued conservatism in lender underwriting and the ongoing prioritization of card payments among consumers,” explains Ezra Becker, VP of research and consulting in TransUnion’s financial services business unit.
This drop in delinquency coincides with the trend of consumers increasing their overall credit card debt. The average credit card debt per borrower rose 5.7% in the past year, from $4,699 in the second quarter of 2011 to $4,971 during second quarter 2012.
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