Credit card charge-off rates reached their highest level in over 14 years by Q2 2024, as borrowers struggled to keep up with debts. This is according to figures gathered by the Federal Reserve from U.S. chartered commercial banks. Credit card became an increasingly more common way to pay after the coronavirus pandemic, as is shown in the distribution of different types of loans in the United States. U.S. consumers had built up their cash reserves, making them eligible to get a credit card. The high charge-off rates were joined by the highest U.S. credit card delinquency rates since the Financial Crisis of 2008.
Charge-off rates of credit card consumer loans at commercial banks in the United States from 1st quarter 1985 to 3rd quarter 2024
Characteristic
Charge-off rate
Q1 1985
1.95%
Q2 1985
2.25%
Q3 1985
2.62%
Q4 1985
2.91%
Q1 1986
3.2%
Q2 1986
3.19%
Q3 1986
3.34%
Q4 1986
3.4%
Q1 1987
3.51%
Q2 1987
3.35%
Q3 1987
3.1%
Q4 1987
3.23%
Q1 1988
3.21%
Q2 1988
3.26%
Q3 1988
3.13%
Q4 1988
3.14%
Q1 1989
3.15%
Q2 1989
3.2%
Q3 1989
3%
Q4 1989
3.24%
Q1 1990
3.1%
Q2 1990
3.26%
Q3 1990
3.46%
Q4 1990
3.83%
Q1 1991
4.17%
Q2 1991
4.68%
Q3 1991
4.71%
Q4 1991
4.64%
Q1 1992
4.9%
Q2 1992
4.86%
Q3 1992
4.24%
Q4 1992
4.52%
Q1 1993
4.1%
Q2 1993
4%
Q3 1993
3.6%
Q4 1993
3.38%
Q1 1994
3.3%
Q2 1994
3.05%
Q3 1994
2.91%
Q4 1994
3.12%
Q1 1995
2.92%
Q2 1995
3.3%
Q3 1995
3.6%
Q4 1995
3.98%
Q1 1996
4.21%
Q2 1996
4.48%
Q3 1996
4.39%
Q4 1996
4.7%
Q1 1997
4.94%
Q2 1997
5.38%
Q3 1997
5.4%
Q4 1997
5.45%
Q1 1998
5.3%
Q2 1998
5.19%
Q3 1998
5.17%
Q4 1998
5.13%
Q1 1999
4.99%
Q2 1999
4.29%
Q3 1999
4.38%
Q4 1999
4.53%
Q1 2000
4.6%
Q2 2000
4.08%
Q3 2000
4.1%
Q4 2000
4.43%
Q1 2001
4.7%
Q2 2001
5.24%
Q3 2001
5.32%
Q4 2001
6.43%
Q1 2002
7.8%
Q2 2002
6.27%
Q3 2002
5.94%
Q4 2002
5.63%
Q1 2003
5.77%
Q2 2003
6.07%
Q3 2003
5.4%
Q4 2003
6.07%
Q1 2004
5.38%
Q2 2004
5.38%
Q3 2004
4.4%
Q4 2004
4.7%
Q1 2005
4.6%
Q2 2005
4.35%
Q3 2005
4.33%
Q4 2005
6.05%
Q1 2006
3.12%
Q2 2006
3.52%
Q3 2006
3.87%
Q4 2006
3.62%
Q1 2007
3.93%
Q2 2007
3.85%
Q3 2007
3.95%
Q4 2007
4.18%
Q1 2008
4.7%
Q2 2008
5.47%
Q3 2008
5.8%
Q4 2008
6.3%
Q1 2009
7.62%
Q2 2009
9.77%
Q3 2009
10.1%
Q4 2009
10.19%
Q1 2010
10.5%
Q2 2010
10.97%
Q3 2010
8.55%
Q4 2010
7.7%
Q1 2011
6.96%
Q2 2011
5.58%
Q3 2011
5.63%
Q4 2011
4.53%
Q1 2012
4.29%
Q2 2012
4.15%
Q3 2012
3.74%
Q4 2012
3.78%
Q1 2013
3.78%
Q2 2013
3.62%
Q3 2013
3.19%
Q4 2013
3.33%
Q1 2014
3.32%
Q2 2014
3.45%
Q3 2014
2.89%
Q4 2014
2.98%
Q1 2015
3.03%
Q2 2015
3.03%
Q3 2015
2.76%
Q4 2015
2.91%
Q1 2016
3.16%
Q2 2016
3.13%
Q3 2016
2.86%
Q4 2016
3.45%
Q1 2017
3.59%
Q2 2017
3.64%
Q3 2017
3.37%
Q4 2017
3.63%
Q1 2018
3.8%
Q2 2018
3.74%
Q3 2018
3.46%
Q4 2018
3.57%
Q1 2019
3.83%
Q2 2019
3.83%
Q3 2019
3.49%
Q4 2019
3.65%
Q1 2020
3.89%
Q2 2020
4.01%
Q3 2020
3.34%
Q4 2020
2.58%
Q1 2021
2.95%
Q2 2021
2.54%
Q3 2021
1.67%
Q4 2021
1.57%
Q1 2022
1.82%
Q2 2022
1.97%
Q3 2022
1.94%
Q4 2022
2.42%
Q1 2023
3.02%
Q2 2023
3.38%
Q3 2023
3.49%
Q4 2023
4.07%
Q1 2024
4.65%
Q2 2024
4.73%
Q3 2024
4.37%
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The source defines charge-offs as the value of loans removed from the books and charged against loss reserves. They were measured using the net of recoveries of commercial banks as a percentage of their average loans and annualized. Essentially, the loan is written off as a loss and unlikely to be collected.
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Federal Reserve. (November 19, 2024). Charge-off rates of credit card consumer loans at commercial banks in the United States from 1st quarter 1985 to 3rd quarter 2024 [Graph]. In Statista. Retrieved February 08, 2025, from https://www.statista.com/statistics/1552818/usa-credit-card-charge-off-rate/?__sso_cookie_checker=failed
Federal Reserve. "Charge-off rates of credit card consumer loans at commercial banks in the United States from 1st quarter 1985 to 3rd quarter 2024." Chart. November 19, 2024. Statista. Accessed February 08, 2025. https://www.statista.com/statistics/1552818/usa-credit-card-charge-off-rate/?__sso_cookie_checker=failed
Federal Reserve. (2024). Charge-off rates of credit card consumer loans at commercial banks in the United States from 1st quarter 1985 to 3rd quarter 2024. Statista. Statista Inc.. Accessed: February 08, 2025. https://www.statista.com/statistics/1552818/usa-credit-card-charge-off-rate/?__sso_cookie_checker=failed
Federal Reserve. "Charge-off Rates of Credit Card Consumer Loans at Commercial Banks in The United States from 1st Quarter 1985 to 3rd Quarter 2024." Statista, Statista Inc., 19 Nov 2024, https://www.statista.com/statistics/1552818/usa-credit-card-charge-off-rate/?__sso_cookie_checker=failed
Federal Reserve, Charge-off rates of credit card consumer loans at commercial banks in the United States from 1st quarter 1985 to 3rd quarter 2024 Statista, https://www.statista.com/statistics/1552818/usa-credit-card-charge-off-rate/?__sso_cookie_checker=failed (last visited February 08, 2025)
Charge-off rates of credit card consumer loans at commercial banks in the United States from 1st quarter 1985 to 3rd quarter 2024 [Graph], Federal Reserve, November 19, 2024. [Online]. Available: https://www.statista.com/statistics/1552818/usa-credit-card-charge-off-rate/?__sso_cookie_checker=failed