A new report on asset-backed U.S. credit card receivables for June shows the delinquency rate has fallen to its lowest rate in four years and the monthly payment rate has reached an all-time high. The charge-off ratio declined year-on-year for the seventh consecutive month but yields continue to slowly sink. According to Moody’s “Credit Card Credit Indexes for June,” the charge-off rate fell to 6.41%, down from 6.73% in March, and 6.87% one-year ago. The June delinquency rate fell to 4.37% from 5.12% a year ago, and 4.74% in March. Cardholders paid back, on average, 16.81% of their credit card debts in June, well above last year’s June rate of 15.20%. Yield for June fell just slightly to 16.98% from 17.06% a year ago. Moody’s data are based on $400 billion of securitized U.S. credit card receivables.
U.S. ABS METRICS
Delinquency Charge-Offs MPR Yield
Jun 03: 5.12% 6.87% 15.21% 17.06%
Mar 04: 4.74% 6.73% 16.60% 17.41%
Jun 04: 4.37% 6.41% 16.81% 16.98%
Source: Moody’s Credit Card Credit Indexes