Quarterly delinquency on consumer loans at commercial banks in the U.S. 2007-2024

In the first quarter of 2024, roughly 2.68 percent of all consumer loans at commercial banks in the United States were delinquent. The delinquency rate on this type of credit decreased after the first quarter of 2020, when it reached 2.47 percent, but it has been rising again since 2021. Loans are delinquent when the borrower does not pay their obligations on time. A possible reason as to why the delinquency rate decreased during the first two years of the COVID-19 pandemic is that the personal saving rate in the U.S. soared during that period due to the restrictions imposed, which limited consumer spending. Since borrowers had more savings, they were more likely to meet their payments.

What is the trend in consumer credit levels in the United States? 

Consumer credit refers to the various types of loans and credit extended to individuals for personal use, often to fund everyday purchases or larger expenses. When credit levels rise, it often signals that consumers are more confident in their ability to manage debt and make future payments. Following a period of stagnation during the COVID-19 pandemic, consumer credit in the United States has surged significantly, driven by a combination of factors such as inflationary pressures, increased cost of living, and a return to pre-pandemic spending habits. By early 2024, consumer credit levels reached over five trillion U.S. dollars.

What is the main channel for acquiring consumer credit?

In 2023, the leading type of consumer credit among consumers in the U.S. was credit card bills. Credit card usage in the North American country was substantial and expected to increase, with credit card penetration reaching 68.4 percent by 2029. Car loans ranked next as a common source of consumer credit, while other types of debt, such as medical bills, home equity lines of credit, and personal educational loans, had lower percentages.