According to new data from TransUnion, missed payment levels are being pushed up by a surge in outstanding debt on newly-issued credit cards. This suggests that lending to subprime borrowers is beginning to backfire.
The figures show that almost 3 percent of all debt on credit cards issued in 2015 are at least 90 days behind on payments, just six months after the cards were issued. This compares to just 1.5 percent of cards from 2013, and 2.2 percent from 2014. The delinquency rate for credit cards is 1.53 percent on average nationwide in the third quarter of 2016 - the highest level since 2012.
A major contributing factor is that many lenders have relaxed their rules and offered credit cards to subprime consumers. Since...
from MoneyTips http://www.moneytips.com/surge-in-missed-payments-on-new-credit-cards/637
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