American consumers are doing a better job of paying their credit card bills on time, bringing the rate of late payments to the lowest level since 1994, according to credit reporting agency TransUnion. The rate of credit card payments at least 90 days overdue reached 0.57 percent in the second quarter, down from 0.63 percent in the same period last year. U.S. credit card debt fell $2.7 billion in June and is 16.5 percent below its July 2008 peak, the Federal Reserve reported.
Although the economy has seen some growth since the recession and home values are on the rise, U.S. consumers remain cautious about credit. Average credit card debt per borrower fell to $4,965 in the second quarter from $4,971 in the same period last year but rose from $4,875 in the first quarter of this year. The number of new credit card accounts increased in the first three months of the year, but the share of subprime borrowers receiving them remained flat at 27.3 percent -- well below the 45 percent going to borrowers with imperfect credit before the recession.