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Annualized, approximately 8.5% of credit card balances and 7.7% of auto loans transitioned into delinquency. Delinquency transition rates for mortgages increased by 0.2 percentage points yet remain low by historic standards.
Delinquency transition rates for credit cards, auto loans, and mortgages increased slightly. Over the last year, approximately 9.1% of credit card balances and 8.0% of auto loan balances transitioned into delinquency.
Aggregate delinquency rates increased in Q1 2024, with 3.2% of outstanding debt in some stage of delinquency at the end of March. Delinquency transition rates increased for all debt types. Annualized, approximately 8.9% of credit card balances and 7.9% of auto loans transitioned into delinquency.
As of June, 3.2% of outstanding debt was in some stage of delinquency. Delinquency transition rates for credit cards, auto loans, and mortgages increased slightly. Over the last year, approximately 9.1% of credit card balances and 8.0% of auto loan balances transitioned into delinquency.
The following table shows median credit card balances and limits and the percentage share of maxed-out borrowers for non-delinquent borrowers in the first quarter of 2024. First, we look at the inputs to utilization by borrowers’ neighborhood income (based on Census block group).
Delinquency transition rates increased for all product types. Over the last year, approximately 8.9% of credit card balances and 7.9% of auto loan balances transitioned into delinquency.
The chart below shows the delinquency transition rates for card users by their outstanding total credit card balances in the previous quarter. Generally, those with higher total balances are more likely to transition to delinquency, and recent trends are consistent with this pattern.
In our recent post on credit cards, we saw that Millennials (born 1980-1994) have seen delinquency rates worsening more quickly than other generations. For auto loans, this appears to be the case as well, although the disparities here are less pronounced.
The 2024 report finds that early delinquencies on auto and credit card products began rising for low-income borrowers in 2022 through Q3 2023, exceeding pre-pandemic levels.
Delinquency transition rates for credit cards, auto loans, and mortgages increased slightly. Over the last year, approximately 9.1% of credit card balances and 8.0% of auto loan balances transitioned into delinquency.