TransUnion Forecasts That Credit Card Delinquencies Will Remain Low

Saturday, December 17th, 2011

The recent release of TransUnion’s annual forecast revealed two big bits of news: both credit card delinquency rates and mortgage delinquency rates are expected to remain low throughout 2012. Credit card delinquencies sunk to a 17-year low during the second quarter of this year.

According to predictions made by TransUnion, the third-largest credit bureau in the country, 2012 should see continued lows in terms of consumer credit card delinquency rates as well as a continued decline in mortgage loan delinquency rates.

Currently the percentage of borrowers 60 days or more past due on making their mortgage payments is 5.9%, but TransUnion expects that figure to drop to 5% by the end of 2012. Historically, mortgage delinquency rates are between 1.5 and 2%, but as a result of the recent recession they crept as high as 6.9% in the latter part of 2009. Since then, they have been declining slowly yet steadily but are still much higher than normal. It will take some time before the rates recede to their historical norm.

Reasons for the falling delinquency rates are, in part, because additional foreclosures have impacted the market, thus causing a reduction in the amount of outstanding delinquencies. Additionally, banks have focused their efforts on availing mortgages only to those borrowers with high credit ratings who are far less likely to default on their payments. The continuing stabilization of the housing market has had a positive effect upon the national mortgage delinquency rate, as well.

Credit card delinquency rates are at historic lows and should remain so in to the New Year. The amount of cardholders late on their payments by 90 days or more sits at 0.6%, a 17-year low.

“The card business is not very risky right now, and we don’t expect it to get very risky any time soon,” said TransUnion group vice president Steven Chaouki, according to Market Watch.

Data gathered by TransUnion revealed the average credit card balance to be $4,762, approximately $1000 less that it was in 2009. This is as a result of a combination of factors: consumers taking it upon themselves to reduce the amount they borrow via credit cards, bank charge offs and tougher lending standards. It is expected that in 2012, Wyoming, Alaska and North Dakota will be the three states in the nation with the lowest amount of credit card debt.

Latest Credit Card Issuers News

Tuesday, December 6th, 2016
It seems that people are always looking for an easier and more convenient way to pay for their purchases. Still, it’s taken some time for folks to get comfortable using their ...
Wednesday, June 22nd, 2016
More and more people are finding out something that used to be difficult to find out—at least for free. Credit scores used to be top-secret and hard to get your hands on, unless ...
Wednesday, January 20th, 2016
Imagine carrying just one credit card with you and earning rewards that you can trade in for free vacations. WorldVentures DreamTrips is teaming up with Nxt-ID to do just that.
Saturday, November 28th, 2015
Good news for U.S. Bank customers: the company has a new online tool to help consumers make savvier choices about personal finances.
Thursday, June 11th, 2015
Discover is going to allow their cardholders to make contactless payments at participating merchants through Apple Pay beginning this fall.
Best Credit Offer
Click the Compare link to compare the checked cards side-by-side at the comparison table.
Consumer Rating: 5 / 5
Horizon Card Services Horizon Gold Credit Card
Copyright © 2001-2017 All Rights Reserved.

* The webpage is a free service and an information resource for credit cards and financial products and services available to eligible United States consumers. does not offer any warranties and is not a direct service. There are no guarantees for approval or offers when applying for a credit card. Please refer to the application if you would like more information on each credit card. When you click "Apply" for a particular credit card, please take the time to review the terms and conditions of the product/service at the issuer's website. All logos on the website are property of their respective owners. makes every effort to keep information up to date and accurate. However, the information regularly changes and is presented without warranty. Therefore, we strongly recommend all our readers to visit the credit card application page by clicking "Apply Online!" button to review the detailed credit card's terms and conditions. Note that may be compensated by the credit card issuers when the readers apply for a credit card through this site. is an independent, advertising-supported website which receives compensation from the credit card issuers and companies whose offers appear on the site. Compensation may impact how and where products appear on our site, including, for example, the order in which they may appear on the site pages. does not review or list all available financial or credit offers.

User Generated Content Disclaimer: These responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.