The number of credit card delinquencies in the United States fell sharply in the last quarter, despite the ongoing economic struggle.
Reuters reports that delinquent accounts for the country’s largest credit card providers fell to 2.35 percent, significantly lower than early 2009’s 6 percent rate, Barclay’s Capital announced. Part of the reason for improving statistics is due to the fact that fewer people are being given credit than before. Prior to the financial crisis, it was relatively easy to open an account, especially compared to today.
According to industry experts, major financial institutions may be slowly giving credit to more people, who were hoping to engage in the merchant services operation.
“It is very subtle,” said analyst Matt Howlett of Macquarie Securities in an interview with Reuters. “It is beginning to reach down ever so slightly into the gray area where you are not prime, but you are not subprime. It is not going to be as dramatic as in other cycles.”
During May, the amount of revolving credit fell, according to the Federal Reserve. Debt held by consumers in the U.S. fell $3.44 billion from April, totaling $862.29 billion.Back To Blog