Credit card delinquencies, based on total dollars outstanding, continued to head north during the fourth quarter, rising to its highest level since the third quarter of 2005. Sequentially, delinquent dollars edged up by four basis points while the number of past-due credit card accounts dropped by one basis point. According to the American Bankers Association’s “Consumer Credit Delinquency Bulletin,” delinquencies based on total dollars outstanding for 4Q/06 were 3.54%, compared to 3.50% in the third quarter and 3.21% for 4Q/05. Based on the number of accounts past-due, the figures were 4.56% for 4Q/06, 4.57% for 3Q/06, and 4.27% one-year ago. The ABA also reports that the composite ratio, which tracks delinquencies in eight closed-end installment loan categories, increased to 2.23% in the fourth quarter, compared to 2.12% in the third quarter. This increase was driven by delinquencies in indirect auto loans, which are arranged through dealerships and home equity loans. Composite ratio delinquencies are in line with the 10-year average of 2.20%.
4Q CREDIT CARD DELINQUENCY HISTORY
(based on total dollars outstanding)
Source: ABA Delinquency Bulletin