August 27, 2014

Long: Lower credit card delinquency rates good for CUs

Aug. 28, 2014 – In a radio interview with Washington-based Marketplace, NAFCU Chief Economist and Director of Research Curt Long discussed why TransUnion's report on the falling credit card delinquency rate is good for credit unions.

"We think this is a positive trend for credit unions," Long said in an interview with senior reporter Nancy Marshall-Genzer. TransUnion reported Tuesday that the 90-day credit card delinquency rate has fallen by about half since 2007 – and is now at a seven-year low.

Even though more consumers are paying their credit card bills on time, Long said banks and credit unions still make money if consumers carry a balance on their credit cards. He said credit card delinquencies can turn into charge-offs, which are never paid back.

"Thankfully we've seen charge-offs decline as well," he said. "Fewer of those loans are going bad."

Marketplace is part of American Public Media. Long's interview was picked up by public radio stations across the nation, including, among others, Southern California, Nevada, Chicago and Boston.