Credit Card Delinquency Rates Rise in October

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Last updated on April 6th, 2023

Consumer spending appears to be shifting after COVID-19. Instead of paying off debt at record levels, consumers now appear to be adding debt, with some issuers experiencing a slight rise in credit card delinquency rates and charge-offs. Here’s what you need to know:

Bank of America Credit Card Delinquency Rates Rise in October

Bank of America’s credit card delinquency rates rose slightly from its three-month moving average in September and October. The delinquency rate for Bank of America credit cards rose to 0.93% in October, slightly above the three-month rolling average of 0.91%.

While a rise in delinquency rates appears problematic, the 0.93% rate is significantly below 2020 levels. The same period last year (October 2020) saw a rate of 1.36% – as consumers felt the full impact of the coronavirus pandemic.

Other Issuers Also Seeing Delinquency Rate Increases

Bank of America isn’t the only card issuer experiencing a rise in delinquency rates. JP Morgan Chase also saw a slight increase, with an October rate of 0.65% – a tick up from 0.64% in September, though still well-below the 1.00% rate in October 2020.

Other notable credit card issuers experiencing a rise in delinquencies according to investor resource, Seeking Alpha, include:

  • Discover: A rate of 1.55% in October 2021, compared to 1.48% in September and 1.99% in October 2020.
  • American Express: A rate of 0.6% in October 2021, compared to 0.4% in September and 2.2% in October 2020.
  • Synchrony: A rate of 2.5% in October 2021, compared to 2.4% in September and 2.8% in October 2020.

Not All Bad News

Fortunately, it’s not all bad news for issuers, with Capital One seeing a slight decrease in delinquencies in October. The card issuer saw a drop in its delinquency rate of 1.04% in October 2021, compared to 1.48% in September 2021, and 1.99% in October of last year.

The news of slight increases in delinquency rates and charge offs also comes amidst a rise in consumer spending and credit card balances. According to the National Mortgage Professionals group, “this apparent rise in consumer spending and credit card balances reflects a shift from COVID-19 economic behavior when most people scaled back spending and substantially paid down debt.”

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About: Cory Santos
Cory Santos

Cory is the senior credit card editor at BestCards, specializing in everything credit card-related. He’s worked extensively with credit cards and other personal finance topics, including nearly five years at BestCards. Cory’s extensive knowledge is an essential part of the BestCards experience, helping readers to live their best financial lives with up-to-date insights and comprehensive coverage of all facets of the credit card space, including market trends, rewards guides, credit advice, and comprehensive credit card reviews.

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