NEW YORK–The credit card delinquency rate has decreased for three straight quarters after hitting its highest point in more than a decade, a new analysis notes.

According to the Federal Reserve, 3.05% of credit card balances were delinquent (30+ days past due) as of Q1 2025. The recent peak was 3.24% in the second quarter of 2024, the highest since the fourth quarter of 2011, according to analysis by BankRate.

BankRate noted the charge-off percentage has followed a similar pattern to delinquencies, hitting its highest point since late 2011 (4.69%) during the second half of last year and then declining slightly.

Not ‘Particularly Concerned’

“Card issuers haven’t appeared particularly concerned about the sizable run-up in delinquencies and charge-offs that have occurred in recent years,” stated BankRate. “They’ve generally viewed this transition as ‘normalization’ after unusual lows during the pandemic.”

BankRate’s report said the charge-off rate bottomed at 1.63% in Q4 2021, the lowest in a Federal Reserve data set that goes back to 1985. The credit card delinquency rate hit its nadir a quarter before that (1.53%), with the most popular theory being Americans used COVID-era economic stimulus payments to pay down debt, while also spending less.

Optimism in Market

“The mood within the credit card industry has generally been pretty upbeat the past few years, although not everything has been rosy,” said Bankrate. “While spending and profits are up, card issuers have also tightened lending standards and pulled back on juicy sign-up bonuses.”

Citing Fed data, Bankrate also reported:

• Credit card originations fell 4.3% from 82.1 million in 2022 (a record high) to 78.6 million new accounts in 2023. The decline steepened from 2023 to 2024, when just 71 million new accounts were opened (a 9.7% year-over-year drop). This year has begun on a similar footing, with January and February originations down from last year but still ahead of pre-pandemic levels, BankRate said.