Credit Card Delinquencies Continue to Fall in 2Q; Average Consumer Credit Card Balances Lowest in Eight Years — According to TransUnion

TransUnion’s quarterly analysis of trends in the credit card industry revealed that the national credit card delinquency rate (the ratio of bankcard borrowers 90 days or more delinquent on one or more of their credit cards) decreased to 0.92 percent in the second quarter of 2010, down 17.1 percent over the previous quarter. Year over year, credit card delinquencies fell by 21.3 percent.

2Q Credit Card Quarterly Statistics

  • Incidence of credit card delinquency was highest in Nevada (1.50 percent), followed by Florida (1.24 percent) and Arizona (1.11 percent). The lowest credit card delinquency rates were found in North Dakota (0.54 percent), South Dakota (0.55 percent) and the District of Columbia (0.61 percent).
  • Only one state showed an increase in credit card delinquency — Alaska (7.4 percent increase). The two areas of the country with the largest quarter-over-quarter drop in delinquency were the District of Columbia (-28.2 percent) and Delaware (-23 percent).
  • Average credit card borrower debt (defined as the aggregate balance on all bank-issued credit cards for an individual bankcard borrower) again drifted downward for the fifth consecutive quarter nationally by 4.1 percent to $4,951 from the previous quarter’s $5,165, and down 13.4 percent compared to the second quarter of 2009 ($5,719). This represented the first period credit card debt was below $5,000 since the first quarter of 2002.
  • The highest state average credit card debt remained in Alaska at $7,148, followed by Tennessee at $5,654 and Hawaii at $5,594.
  • The lowest average credit card debt was found in Iowa ($3,792), followed by North Dakota ($4,097) and West Virginia ($4,104).
  • Only three states showed an increase in average credit card debt from the prior quarter (Alaska, Oklahoma, and the District of Columbia). The largest decreases in average credit card debt over the previous quarter occurred in Alabama (-22.4 percent), Tennessee (-15.5 percent) and Mississippi (-14.2 percent).
  • On a year-over-year basis, national credit card originations dropped almost 6.5 percent. However, 12 states showed increases in originations since the second quarter of 2009. The states with the greatest year-over-year increases were Maine (27.3 percent), Ohio (18.7 percent), and Washington (15.2 percent).
  • The areas with the steepest declines in year-over-year credit card originations were Arizona (-15 percent), Georgia (-14.6 percent), and Michigan (-14 percent).
  • As credit card delinquency trends differ between the national and state economies, metropolitan areas also show different movements in the second quarter of this year. Approximately 90 percent of metropolitan statistical areas (MSAs) showed a decrease in their 90-day credit card delinquency rates since last quarter.
  • The area with the largest drop in delinquency since the last quarter was the Lewiston, ID-WA Metropolitan Statistical Area (-52.9 percent). The area with the largest increase in delinquency since last quarter was the Brunswick, GA Metropolitan Statistical Area (73.9 percent).

Source: TransUnion


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