While payment rates remain historically high there is a downward trend over the past three months. Among credit card-backed securities, November represented the 10th month over the past year in which the payment rate exceeded 18%. The payment rate has averaged 18.6% during the current 12-month period. According to Standard & Poor’s Ratings Services’ “Bank Card Credit Card Quality Index,” the payment rate declined 20 bps to 18.8% in November, compared to 19.0% in October and 19.2% in September. S&P noted that more than three-fourths of the trusts experienced lower payment rates during November. The November payment rate of 18.8% is 140 bps higher than it was during the comparable period in 2004, 140 bps higher than the 2004 average of 17.4% and 240 bps higher than the 2003 average of 16.4%. Additionally, the payment rate averaged 18.7% during the first 11 months of 2005.
November Monthly Payment Rate
Source: Source: Standard & Poor’s Ratings Service