Fitch: Quarterly Losses Reverse Course for U.S. Credit Card ABS
Credit card chargeoffs finished third-quarter 2015 4% lower than the same period in 2014. Credit card delinquencies fell below 1%, with late payments declining five basis points from the previous quarterly average to 0.96%. 'Movement in credit card chargeoffs will likely be minor as late payments continues to ease and hover at historical lows,' said Director Herman Poon.
Average monthly payment rates also moved into record high territory during 3Q'15 as credit card borrowers continued to keep their debt in check. Average quarterly credit card ABS outstandings fell for the first time after 10 straight quarterly increases.
The U.S. Credit Card ABS Index is part of Fitch's series of structured finance index reports. The index reports are updated quarterly and are available at 'www.fitchratings.com'.