Delinquency rate rises, net charge-offs dip: September Credit Pulse

[Person Using a Credit Card to Purchase Pastries at a Coffee Shop]
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U.S. credit card delinquencies continued to rise last month even as net charge-off rates fell, signaling more borrowers were falling behind but a smaller share of balances were being written off.

Both measures remained well above pre-pandemic levels, and total credit card lending slipped by about half a percentage point in the month to $513.3B, but jumped 26% Y/Y, according to Seeking Alpha's compilation of credit card metrics published on Monday.

The average delinquency rate advanced to 2.75% in September from 2.67% in August, but fell from 2.99% a year ago. That's also well above the pre-pandemic rate of 1.59% in September 2019.

Meanwhile, the average net charge-off rate of 3.56% slid from 3.74% in the earlier month and 3.79% in August 2024. Six years ago, the rate stood at 2.54%.

In mid-September, the Federal Reserve reduced interest rates, and the central bank is widely expected to deliver another 25-basis-point cut when it meets this week. For credit card borrowers, such monetary easing can nudge down credit card annual percentage rates (APRs), so carrying a balance gets slightly less expensive. That, in turn, gives issuers a better chance of getting paid back.

[September 2025 credit card delinquencies, net charge-offs (Company filings, press releases)]
September 2025 credit card delinquencies, net charge-offs (Company filings, press releases)