topic Bank card delinquencies dip below 15-year average in Credit in the News

Bank card delinquencies dip below 15-year average

Anonymous — Tue, 05 Apr 2011 13:45:37 GMT

Delinquency rate on bank-issued credit cards falls

Re: Bank card delinquencies dip below 15-year average

fused — Tue, 05 Apr 2011 17:31:01 GMT

I must say I'm a bit surprised by this report.

Re: Bank card delinquencies dip below 15-year average

llecs — Tue, 05 Apr 2011 17:42:04 GMT

IMO, and certainly not factual without looking at the numbers, but I think the credit crisis weeded out delinquent-to-be account holders early in the period leaving those with better credit or those with great payment habits.

Re: Bank card delinquencies dip below 15-year average

fused — Tue, 05 Apr 2011 17:46:27 GMT

That's a good insight, llecs.

Re: Bank card delinquencies dip below 15-year average

Anonymous — Tue, 05 Apr 2011 19:51:30 GMT

This link in this recent post includes another viewpoint on why bank card delinquencies are lower.

This comment was made by Mark Green, CEO for FICO: "what's happening in the credit card space is people worked down their debts. whether they work them down themselves or banks pull back the lines, we've seen consumer credit and credit cards come down from a third from peak to trough. it's manageable now.".............

Yet later in the conversation, these interesting comments were made:

"People were paying their credit card bills before they were paying their mortgages, which is a reverse from 20-30 years ago. The mortgage was sacro-sanct. You paid that no matter what."

Mark Greene: "They call that the inversion of the payment heirarchy, and you know why? People were living off their credit cards, that's the one thing you needed to pay for groceries...."

"Groceries, gas, etc."

Re: Bank card delinquencies dip below 15-year average

Anonymous — Thu, 14 Apr 2011 11:30:30 GMT

Valid comments, all.

Question: If a bank card is already charged off, is it no longer considered "delinquent" ? Not to be overly simplistic here, but if I have 40 credit customers, and 20 of them haven't paid me a dime in many months, and I then write off their debt...does that mean the delinquency rate for my credit customers is 0%?

Just curious if my hypothetical credit customers' delinquency rate is 0% or 50%. I'd guess the answer would depend on whom I'm trying to impress at any given moment to obtain the results I'm looking for.

There's an old adage, "Figures don't lie, but liars figure." (or something like that)

Everything's rosy now!! The ABA says so. I am so relieved!!