Recent data from Fitch Ratings showed credit card asset-backed securities improved last month, and delinquencies of 60 days or more will likely fall to an all-time low for general card issuers while retailers will see seven-year lows.
The ratings firm’s 60+ Day Delinquency Index is expected to fall below 1.60 percent, an all-time low, for the March reporting period. The data also suggests that monthly payment rates will likely improve month-over-month, while chargeoffs are expected to remain flat.
“Credit card losses will plateau in the near term before trending higher later this year,” Fitch Ratings Managing Director Michael Dean said, according to The Wall Street Journal.
Bank of America, JPMorgan Chase, Capital One, American Express and Citigroup all reported decreased delinquency rates for March, though Discover’s delinquency rate remained unchanged, Investors.com reports.