Credit reporting firm TransUnion reported Aug. 13 that the ratio of credit card accounts that are more than 90 days past due dropped to 0.57% in the second quarter of 2013, down from 0.63% in the second quarter of 2012. That 0.57% is only one basis point from the all-time low of 0.56% set in 1994.
TransUnion also said credit card debt per borrower dropped year over year, but only slightly, from $4,971 per cardholder in the second quarter of 2012 to $4,965 in the second quarter of 2013.
“Despite recent improvements in the employment situation, consumers continue to value their credit card relationships as a primary means of liquidity. This is best demonstrated by the historically low credit card delinquency rates we observe today,” said Ezra Becker, vice president of research and consulting in TransUnion’s financial services business unit. “Credit card debt also remains relatively low, and while we did observe a quarterly rise in debt, we would need to see a few more quarters of increases to describe it as a significant trend.”
Becker added that the data supports that consumers will continue to prioritize their credit card relationships and delinquencies should remain low into the near future.