TransUnion: Credit Card Delinquency Rate and Debt Drop on Both Quarterly and Yearly Basis

CHICAGO, IL--(Marketwired - May 14, 2014) - The latest TransUnion Industry Insights Report found that the credit card delinquency rate (the ratio of borrowers 90 days or more delinquent on their general purpose credit cards) dropped on a yearly basis from 1.51% in Q1 2013 to 1.37% in Q1 2014. Average credit card debt per borrower also declined from $5,201 in Q1 2013 to $5,164 in Q1 2014. 

On a quarterly basis, both the credit card delinquency rate (down from 1.48% in Q4 2013) and credit card debt (down from $5,325 in Q4 2013) decreased due to seasonality associated with improved payment patterns after the holiday season. 

The data provided are gathered from TransUnion's proprietary Industry Insights Report, a quarterly overview summarizing data, trends and perspectives on the U.S. consumer lending industry. The report is based on anonymized credit data from virtually every credit-active consumer in the United States.

"We generally see lower credit card delinquency rates and balances in the first quarter of the year as many consumers pay down credit cards that they charged up during the holiday season," said Ezra Becker, vice president of research and consulting in TransUnion's financial services business unit. "Some consumers who receive tax refunds near the end of the first quarter also use these funds to help pay off debts, including their credit cards."

Only one state -- Alaska -- experienced an increase in its credit card delinquency rate between Q1 2013 and Q1 2014. The largest percentage delinquency declines occurred in Massachusetts, Wisconsin and Illinois. Credit card debt per borrower increased in only 15 states on a yearly basis. 

TransUnion reported 344.53 million credit card accounts as of Q1 2014, up from 329.73 million in Q1 2013. Viewed one quarter in arrears (to ensure all accounts are included in the data), new account originations increased to 13.45 million in Q4 2013, up from 11.56 million in Q4 2012.

TransUnion's latest credit card report also found that the non-prime population (those consumers with a VantageScore® 2.0 credit score lower than 700) represents a larger portion of all new credit card loans at 28.95% in Q4 2013, up from 27.28% in the same period last year. In Q4 2007, the non-prime population represented 37.58% of all credit card originations for that quarter.

"We see some positive signs in the market with more credit cards being issued although the sector as a whole is growing at a small rate," said Toni Guitart, director of research and consulting in TransUnion's financial services business unit. "It is also encouraging that delinquency levels have dropped on a year-over-year basis even though the share of non-prime consumers gaining access to card credit has increased. Together, these findings point to a healthy credit market."

This information is reported by TransUnion and is part of its ongoing series of quarterly analyses of credit-active U.S. consumers and how they are managing credit related to mortgages, credit cards and auto loans. To subscribe to TransUnion news releases, please click here. 

Q1 2014 Credit Card Statistics - Consumer-Level Delinquency Rates

Quarter over Quarter	Q4 2013	Q1 2014	Pct. Change
USA	1.48%	1.37%	(7.4%)

Year over Year	Q1 2013	Q1 2014	Pct. Change
USA	1.51%	1.37%	(9.3%)

Credit Card Consumer Delinquency Rates for Select States	Q1 2014
California	1.33%
Florida	1.67%
Illinois	1.21%
New York	1.45%
Texas	1.55%

Largest Year-over-Year Declines	Q1 2013	Q1 2014	Pct. Change
Massachusetts	1.49%	1.20%	(19.5%)
Wisconsin	1.00%	0.81%	(19.0%)
Illinois	1.45%	1.21%	(16.6%)

Largest Year-over-Year Increases	Q1 2013	Q1 2014	Pct. Change
Alaska	1.20%	1.21%	0.8%

Q1 2014 Credit Card Statistics - Credit Card Debt Per Borrower

Quarter over Quarter	Q4 2013	Q1 2014	Pct. Change
USA	$5,325	$5,164	(3.0%)

Year over Year	Q1 2013	Q1 2014	Pct. Change
USA	$5,201	$5,164	(0.7%)

Credit Card Debt per Borrower for Select States	Q1 2014
California	$5,230
Florida	$5,176
Illinois	$5,185
New York	$5,328
Texas	$5,406

Largest Year-over-Year Declines	Q1 2013	Q1 2014	Pct. Change
Arizona	$5,337	$5,208	(2.4%)
California	$5,345	$5,230	(2.2%)
Nevada	$5,190	$5,080	(2.1%)

Largest Year-over-Year Increases	Q1 2013	Q1 2014	Pct. Change
Vermont	$4,787	$4,831	0.9%
West Virginia	$4,564	$4,600	0.8%
Oklahoma	$4,990	$5,023	0.6%

About TransUnion
As a global leader in credit and information management, TransUnion creates advantages for millions of people around the world by gathering, analyzing and delivering information. For businesses, TransUnion helps improve efficiency, manage risk, reduce costs and increase revenue by delivering comprehensive data and advanced analytics and decisioning. For consumers, TransUnion provides the tools, resources and education to help manage their credit health and achieve their financial goals. Through these and other efforts, TransUnion is working to build stronger economies worldwide. Founded in 1968 and headquartered in Chicago, TransUnion reaches businesses and consumers in 33 countries around the world on five continents. www.transunion.com/business