Card Delinquencies Rise to 4.51% in 1Q: Bank Group

Bank credit card delinquencies rose 13 basis points to 4.51 percent in the first quarter, topping the five year average delinquency rate of 4.40 percent, according to a release from the American Bankers Association today. For this report the bankers’ trade group defines delinquencies as accounts that are more than 30 days past due.

The ABA reported that its composite rate for delinquencies on eight closed-end installment loan categories fell three basis points in the first quarter to 2.62 percent, primarily due to a four basis point drop in indirect auto loan delinquencies to 3.09 percent.

However, the delinquency rate for most of the loan categories increased. The rate for home equity lines of credit (HELOC) in the first quarter reached its highest level since 1987 when the number was first tracked. The percent of HELOC accounts more than 30 days past due rose 14 basis points to 1.10 percent in the first quarter.

James Chessen, the ABA’s chief economist, said in a statement that Washington’s tax stimulus checks are helping consumers but not enough to counter the rising cost of gas and food, and declining home and stock prices.

“The tax stimulus is helping to boost personal income, but persistently high gas and food prices will eat away at overall resources,” said Chessen. “It was a tough quarter.”

Delinquencies on marine loans rose 18 basis points to 1.75 percent; on mobile home loans rose 30 basis points to 3.22; on direct auto loans rose two basis points to 1.92 percent; and on personal loans increased seven basis points to 2.55 percent.