Consumer Comeback Blog

Credit Card Delinquency Rate Lowest Since 1994

A new study by TransUnion, a financial information and risk management company, found that credit card delinquency rates dropped in the second quarter of 2012 to the lowest rate they’ve seen since the fourth quarter of 1994. The percentage of credit card holders at least 90 days past due on their payments is now .63%, down from .73% in the first quarter of 2012.

The average debt per person has increased, however, from $4,699 in the first quarter of 2012 to $4,971 now. The average debt is significantly lower now than it was in the second quarter of 2009, when it was $5,719 per person.

The study also found that the number of new credit card holders is increasing—which could have something to do with the lowered delinquency rate. In the second quarter of 2012, new credit card accounts were 4% higher than they were in the second quarter of 2011.

While only five states saw an increase in their delinquency rates, one in five metropolitan areas saw an increase in delinquency.

The states with the highest delinquency rates are, in order, Mississippi, Nevada, Alabama, Georgia, and West Virginia. The states with the lowest delinquency rates are, in order, North Dakota, South Dakota, Montana, and Nebraska. Massachusetts has seen the biggest increase in delinquency rates since last quarter.

Alaska has the highest average credit card debt per person, at $7,045, followed by Colorado, North Carolina, and Connecticut. Iowa has the lowest average credit card debt per person, at $3,874, followed by North Dakota, Wisconsin, and South Dakota.

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