Credit Card Delinquency Projected to Stay Low in 2013 - Other News

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » Credit Card Delinquency Projected to Stay Low in 2013

Credit Card Delinquency Projected to Stay Low in 2013

Credit Card Delinquency Projected to Stay Low in 2013
December
18
The content is accurate at the time of publication and is subject to change.

There was a slight increase in credit card delinquency rates this year compared to last, but the numbers are still relatively low and expected to stay there, according to credit bureau TransUnion. Projections call for the number of people who are more than 90 days late paying their credit card bills to stay below a rate of 0.90% in 2013.

In the second quarter of 2011, the credit card delinquency rate reached its lowest point since 1994. The fourth quarter of 2011 had a 0.78% delinquency rate. In 2012 the rate was 0.83%. TransUnion predicts that rate will go up just slightly to 0.87% next year.

State by state

Overall, Mississippi, West Virginia and Arkansas are expected to have the highest rates of credit card delinquency in 2013. North Dakota, Montana and Minnesota are projected to have the lowest rates.

Only six states are expected to experience declines in the delinquency rates, including Rhode Island, Montana, and Georgia. States projected to have the biggest increases in delinquencies are Ohio, Missouri, and North Dakota.

More debt, less delinquency

A lower credit card delinquency rate does not necessarily translate to increased fiscal health of consumers. With unemployment still a pressing issue, many people are relying on credit cards to pay for basic needs like food and utilities.

That translates to more new credit cards. “Credit card originations have been increasing in the last few years, and with that increase we have seen non-prime borrowers receive not only more credit cards, but also comprise a larger share of new credit cards,”  said Steve Chaouki, group vice president in TransUnion’s financial services business unit.

Forecasts are subject to change depending on changes in economic factors like unemployment and real estate prices.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

Credit Continues to Increase, Improving Economic Outlook
Credit Continues to Increase, Improving Economic Outlook

Posted: January 11, 2013

November numbers released by the Federal Reserve show a rise in credit for the fourth month in a row. Continue reading
AARP: Credit Card Debt Takes a Bite Out of Retirement Security
AARP: Credit Card Debt Takes a Bite Out of Retirement Security

Posted: January 29, 2013

Folks over 50 are carrying more credit card debt than younger generations, according to a recent study by the AARP Public Policy Institute and Demos. Continue reading
Spending Too Much and Not Saving Enough Result in Fiscal Cliff for Consumers
Spending Too Much and Not Saving Enough Result in Fiscal Cliff for Consumers

Posted: December 17, 2012

Overspending, not saving, and making only minimum payments on credit cards are some of the poor financial habits cited in a recent survey from Allianz Life Insurance. Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com and more up to the quarterly maximum, each time you activate.
For Excellent, Good Credit
INTRO OFFER: Discover will match ALL the Miles you've earned at the end of your first year, automatically. For example, if you earn 30,000 Miles, you get 60,000 Miles. That's $600 towards travel!
For Excellent, Good Credit
Earn 2% cash back on purchases: 1% when you buy plus 1% as you pay
For Excellent, Good Credit
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!