USB - Credit card delinquency charge-off rates rise on path to normalization in January

January's credit card metrics show that the U.S. consumer is gradually reverting to more normal patterns of spending. There are still differences to pre-pandemic trends, but the trajectory is pointing toward higher delinquency and net charge-off rates. Looking at the average rates of eight big credit card issuers, more consumers are falling behind on their credit card payments and banks are starting to charge off a bigger proportion of their receivables as seen in the table below. January's credit card metrics reflected "orderly normalization in credit," continuing the trend seen over the past few months as delinquencies rise modestly, Jefferies analyst John Hecht said in a note to clients.       2022            2021 Company Ticker Type January December November 3-month average Capital One COF delinquency 2.40% 2.22% 2.13% 2.25%     charge-off 2.03% 1.76% 1.66% 1.82% American Express AXP delinquency 0.80% 0.70% 0.70% 0.73%

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Credit card delinquency, charge-off rates rise on path to normalization in January