NEW YORK—More consumers are paying their credit card bills on time.
Federal Reserve data show card delinquencies are falling. Accounts 90 days or more delinquent tumbled from 5.31% to 3.78% in Q1 2021, Payments Journal reported.
“With this in mind, consumers and retailers should expect to see loosened credit underwriting to enable credit card issuers to rebuild their portfolios,” Payments Journal said.
Chase’s credit card delinquency volumes decreased substantially, with a decline to 0.78% in April from 0.89% in March. The same time last year Chase’s delinquencies were 1.27%.
Improvements in charge-offs continued at Chase, from 2.03% to 1.97%. Discover experienced similar improvements, as did Capital One. Discover delinquencies fell in April from 1.85% to 1.69%, with charge-offs declining to 2.55% from 2.71%. At Capital One, delinquencies fell to 1.92% from 2.24%, according to the Fed.