Credit card delinquencies were up in the fourth quarter due to seasonal factors, while charge-offs increased to a new record high in January, according to the latest reports from TransUnion and Moody’s Investors Service.
TransUnion’s quarterly analysis of trends in the credit card industry revealed that the national credit card delinquency rate — the ratio of bankcard borrowers 90 days or more delinquent on one or more of their credit cards — increased to 1.21 percent in the fourth quarter of 2009, up 10 percent over the previous quarter. Year over year, credit card delinquencies remained flat.
Meanwhile, Moody’s reported that credit card charge-offs advanced above 11 percent in January, for the first time ever, to 11.15 percent. The ratings agency predicted that credit card charge-offs will peak at close to 12 percent in the next several months.
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