A new FICO survey says that while credit card delinquency rates are decreasing right now, and have been for the past two years, if the economy doesnt turn around soon, they could shoot up fairly quickly.
The credit scoring firm said that in their survey, they worked with 188 bank managers in August. Forty percent of them expected delinquencies to go up in the next six months. Almost half of them said the average credit card balance would increase over that same time period. Additionally, almost the same number said they feared the US was headed into another recession and housing prices wouldnt return to the 2007 levels before 2020.
There is a bright spot in all of this data, however. Almost 64% of those surveyed said that credit card use wouldnt reach pre-recession levels for at least another five years. In other data, Equifax reported that consumers opened 18 million new credit card accounts between January and June, a new high over the course of the last three years.