CONSUMER LOAN DELINQUENCIES
FOR U.S. CREDIT UNIONS | DATA AS OF 09.30.22
© Callahan & Associates | CreditUnions.com
- Late payments are on the rise for consumer loans. The national average hit 1.92% at the end of the third quarter. At U.S. credit unions, however, the delinquency rate for consumer loans — non-commercial and non-real estate loans — was just 1.13%. Of note, banks report delinquencies beginning at 30 days as well as 90 days; reportable delinquency at credit unions begins at 60 days.
- Consumer loan delinquency crossed 1% in mid-2022; still, it remains lower than during the Great Recession, when rates averaged 1.43%.
- Credit card delinquency has risen steadily the past 12 months as consumers prioritize paying off higher-balance loans. As of Sept. 30, credit card delinquency was 2.08% nationally and 1.29% at credit unions. Used auto loans have the second-highest delinquency rate — 0.65% — at credit unions..
- Federal relief for COVID cushioned loan payments and contributed to a drop in delinquency in 2020 and 2021. The delinquency rate now appears to be normalizing. Still, with a possible recession around the corner, credit unions should closely monitor their delinquency.
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