Credit Card Usage Up, Delinquencies Down

NEW YORK—As the U.S. economic recovery continues to stumble, consumers are paying more attention to their personal finances, as credit card late payments have hit a 17-year low.

Credit card delinquencies declined to 0.6 percent nationally at the end of the second quarter, which is down from the 0.74 percent from the first quarter and the 0.92 percent from 2010, according to consumer credit agency TransUnion in a research note released on Tuesday.

Delinquencies as measured by credit card companies include balances, which are more than 90-days past-due. Nationally, people in Nevada, Florida, and Georgia have the highest delinquency rates.

"National credit card delinquency rates have fallen to levels not seen since 1994 as consumers continue to tighten their spending," said Ezra Becker, vice president of research and consulting in TransUnion’s financial services business unit, in a statement.

According to TransUnion, the lower past-due rates are the result of consumers becoming more discerning with their personal finances, and banks are tightening their standards in determining who gets credit cards.

“More important and impactful to the decline in bank card delinquency are that consumers are using credit cards more responsibly; a large number of delinquent accounts have moved to charge-off status; and lenders remain conservative in their underwriting,” Becker said.

Delinquency rates lowered even as consumers tacked on more debt. Average credit card debt per consumer rose 0.42 percent to $4,699 per person.