Credit card delinquencies saw a further dip in the first quarter this year heralding good news to many credit card lenders. As per the latest reports from one of the three credit bureaus in the country TransUnion, only 0.74% of the credit card accounts were found to be delinquent by over 90 days during the first three months. This was not just lower than 0.88% in the further quarter of 2010 it was also a significant drop as compared to the same time period in 2010 when it stood at 1.11%. Furthermore, this is lowest delinquency rate since the third quarter in 1996. The report from TransUnion also predicts that this number will further go down the coming months.
TransUnion’s financial services VP of the research and consulting wing, Ezra Becker said that as per the current trends in economy, though the seasonal factors will continue to impact the delinquency rates, the numbers will continue to hover below 0.7% till the last quarter of 2011.
During the first three months of the current financial year, customers saw their credit card debt reduce to $4,679 which is a drop of 5.8% as compared to the final quarter of last year when it fell to $4,965. The current credit card debt is way lesser than $5, 776 which was the money owed by credit card holders when the recession was at its peak during the first three months of 2009.
While the delinquency rate in Nevada is the highest at 1.16%, North Dakota recorded the least at 0.36%.
