Prime credit card charge-offs hit record low

Credit cards 230x150
By Sasha Padbidri
04 Jan 2017

The charge-off rate for prime credit cards hit a new low in December, with market watchers predicting that the sector should be able to withstand rate hikes in the coming year.

The prime credit card ABS charge-off level — the amount of 180 day delinquent credit card payments declared uncollectable — dropped to 2.33% in December, 10bp lower than in October 2016 and about 80% lower than the September 2009 peak charge-off figure of 11.52%. The charge-off rate is ...

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