"Bank card delinquencies remain at surprisingly low levels even as credit card spending increases,” says the American Bankers Association chief economist James Chessen. "More and more consumers are using their credit cards as a payment vehicle, paying off or paying down their balances each month.”
Bank card delinquencies of 2.44% in Q1 fell a big 16 basis points from the previous quarter, and continue far below the 15-year average of 3.82%.
The composite ratio which tracks delinquencies in eight closed-end installmant loan categories edged up four basis points to 1.63% of all accounts. The 15-year average is 2.33%.
With the numbers so low, Chessen isn't calling for further improvement, but instead fluctuations around the current figures.