Consumer Payment Card News

How Many Americans Make Credit Card Late Payments Each Month?

Among the largest credit card issuers (Chase, Capital One, Bank of America, Citibank) of major brands or global network cards (Visa, Mastercard, American Express, Discover) the credit card late payments rate or delinquency rate is currently 2.40%. The average for Top 100 banks issuing major credit cards the delinquency rate is currently 2.54%.

Credit Card Late Payments

Considering the Top 4 Issuers hold nearly 50% of the total U.S. bank credit card market, it would be fair to say the industry wide average is currently 2.47%.

This figure is the percentage of the total amount owed on bank credit cards and very closely follows the number of accounts. Therefore it would also be fair to say around 2.5% of all bank credit card accounts are currently late or delinquent.

Credit card delinquency is defined as payments more than 30 days past the due date.

Retail Credit Cards

Please note the delinquency rate among store credit cards, gas credit cards or other retailer-branded issued credit cards is considerably higher in the neighborhood of 3.75% currently.

For example, Citibank’s retail credit card delinquency rate is 3.58%, compared to 1.70% for its Visa, Mastercard and American Express cards. Synchrony Financial, a major retail credit card issuer (Walmart, etc), reports a current delinquency rate of 4.76%.

Retail credit cards are much easier for consumers with below average credit scores to qualify. Lower credit scores produce higher late payments, defaults or delinquency rates.

Capital One is a major issuer of subprime credit cards to consumers with FICO scores below 660, and is reflected in their above average delinquency rate.

Top 4 Bank Credit Card Issuers

Early stage delinquency (30+ days) for the fourth quarter (4Q/18), among the nation’s Top 4 issuers, increased 13 basis points (bps) sequentially, and edged up year-on-year (YOY) by 16 bps.

According to CardData, the average rate among the top four issuers (Chase, Capital One, Bank of America, Citibank) was 2.40% for 4Q/18, compared to 2.27% for 3Q/18 and 2.34% for 4Q/17.

The uptick in credit card delinquency, coupled with a recession forecast, is loan-loss reserves increasing, the metrics are expected to rise throughout 2019, according to RAM Research.

The number of credit card late payers grew to highest level since the first three months of 2013. The Top 100 banks report consumer credit card delinquency, those whose account(s) have fallen more than 30 days late or past the due date, has been slowing edging upward throughout the last six years, despite the robust American economy.

Top 100 Bank Credit Card Issuers

The 30+ day delinquency rate, seasonally adjusted (SA), among the top 100 U.S. banks for the fourth quarter (4Q/18) increased five basis points (bps) from 3Q/18, and up six bps year-on-year (YOY), according to figures released by the Federal Reserve.

According to the Federal Reserve, the top 100 U.S. banks posted a 30+ day SA delinquency rate of 2.54% for 4Q/18, compared to 2.49% in 3Q/18, and 2.48% for 4Q/17.

Source: Visa; Mastercard; American Express; Discover; Capital One; Chase; Bank of America; Citibank; RAM Research; CardFlash; CardData; CardTrak; Federal Reserve;