Data released last week by Fitch Ratings showed that prime 60+ day delinquencies are likely to rise, marking the end of a six-month period of decline.
The ratings company said that delinquencies will likely increase slightly for the remainder of the year, though collateral performance is expected to remain stable, despite the increase in delinquencies.
Fitch’s Prime Monthly Payment Rate Index also showed the likelihood of a seasonal decline from its all-time high in September. Gross yield is expected to rise, despite its traditional decline for the September reporting period.
The ratings agency also said chargeoffs are expected to decline for the sixth straight month, marking another seven-year low for chargeoffs.
Preliminary results for retail credit cards, however, are expected to decline. Fitch’s preliminary Retail 60+ Day Delinquency Index is expected to increase for the fourth straight month, while chargeoffs are expected to decline slightly month-over-month.
Actual results will be posted next month.