Credit Card Defaults, Late Payments Stabilize; Points to Typical Seasonal Pattern Returning

November 15, 2011
Associated Press 
credit card news

The stabilization of credit card defaults and late payment rates indicate that cardholders are reverting to seasonal payment patterns that predated the Great Recession. The six leading credit card-issuing banks posted mixed outcomes for customers' payment behavior last month, with three reporting small hikes in default rates and three reporting slight drops; four of the banks disclosed declines in the rates of payments late by 30 days or more, while two reported small increases. Reasons underlying the low default and delinquency rates include card companies cutting off delinquent borrowers when the housing crisis struck and unemployment began to spike; problem payment rates have been suppressed by the inability of consumers who defaulted on cards from 2008 to 2010 to get new credit. TransUnion reported on Tuesday that in June through September, nearly 250,000 more cards were issued to consumers with credit scores that indicate some past payment difficulties.
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