NEW YORK — The rate at which credit-card holders fell behind on their payments was far worse in the second quarter than it was last year, but did improve sharply from the alarming level seen in the first three months of 2009.
Credit reporting agency TransUnion said the rate of bank-issued credit-card payments that were 90 days or more past due shot up to 1.17 percent for the three months ended in June, from 1.04 percent in the 2008 period.
But the figure was down significantly from the first quarterof this year, when 1.32 percent of cardholders were three months or more behind on the payments. That improvement came despite soaring unemployment and other economic pressures.
Long-term data show that second-quarter payments are more likely to be made on time than payments in the first quarter. Typically, consumers use tax refunds or salary bonuses to pay off debt, often after running up card balances during the Christmas shopping season.
But while a decrease in delinquencies in the second quarter from the first isn't unusual on a historical basis, it does markthe first improvement in a year. Moreover, the figures show less impact from the weak economy than expected.
"Since unemployment is a primary driver of delinquency, you would have expected an increase in delinquency," said Ezra Becker, director of consulting and strategy in TransUnion's financial services group.
Not every statistic was positive. The average debt consumers carry on their bank cards rose in the second quarter to $5,719, from $5,621 in the 2008 period. It declined only slightly from the first quarter, when the average stood at $5,776.
Business, Pages 70 on 08/30/2009