Credit card delinquency rates rose to 3.4% in the first quarter, the highest level in over a decade, as consumers strained by persistent inflation fall behind on payments.
Subprime borrowers are seeing the steepest increases, while prime borrowers remain relatively stable. Issuers are tightening underwriting on new accounts and reducing credit lines for higher-risk holders.
Consumers carrying balances should prioritize paying them down, as average APRs above 22% make credit card debt among the most expensive forms of borrowing.
