Credit card receivables backing asset-backed transactions posted late-stage delinquencies of 1.71% in October, the first increase this year, according to an index put out by Fitch Ratings. The figure was 1.69% in September.
But overall the metrics of the industry are still at historically robust levels.
Even with its rise, the late-stage delinquency rate remains well below the 3% averaged by the Prime Credit Card Performance Index since its inception in 1991. Early stage delinquencies — linked to accounts 30 days past due — stood still in October, at 2.21%.
Charge-offs measured by Fitch eased 13 basis points, to 4.16%, hitting the lowest level since early 2007. With the exception of Citibank, the large trusts that make up the lion’s share of the index saw fewer defaults. These include programs from Bank of America, Capital One, Chase, and Discover.
Fitch tracks receivables behind $107 billion in credit card securitizations.