Figures compiled by TransUnion LLC show that both the credit card delinquency rate and the average credit card debt per borrower declined on a annual basis during the third quarter. Card delinquency fell to 1.36 percent, down 14 basis points from 1.50 percent a year earlier. On a quarterly basis, the delinquency rate experienced a seasonal jump from 1.27 percent in the April-to-June period. Credit card debt per borrower fell 1.3 percent over the past year to $5,235 in the third quarter.
"Our data show that consumers continue to deleverage, with balances dropping in the past year and remaining near historical lows," says Ezra Becker of TransUnion. The biggest drops in delinquency were seen in Massachusetts, West Virginia, and Washington. Rhode Island and Vermont were the only two states to report higher levels, but even those gains were slight. The report also found that consumers with a credit score lower than 700, or non-prime borrowers, continue to represent a smaller portion of all credit card loans: 29.06 percent in the third quarter, down from 29.82 percent in the corresponding months of 2012.
TransUnion expects consumer delinquencies to rise in the fourth quarter due to holiday spending.