Credit card late payments grow with more lending to subprime cardholders
TransUnion released a report indicating that credit card delinquencies are rising due to more lending to subprime borrowers in recent years. The data also predicts even more borrowers will be late on their payments next year, due to rising interest rates.
CU Today says, “The rise in late payments is not alarming, remaining well below their highs during the financial crisis, Nidhi Verma, senior director of research and consulting in TransUnion’s financial services business unit, told CBS Money Watch.”
According to TransUnion, the percentage of credit card accounts held by subprime borrowers is at its highest level since 2010. In addition, the percentage of car loans held by people with weak credit is at its highest point since 2013, a trend that worries some economists, noted CBS. The Federal Reserve Bank of New York recently estimated that at least one million people are at least 90 days late on their car payments.
Read more at CU Today.