Late credit-card payments hit 15-year low

Late payments on credit cards fell to their lowest level in 15 years during the first three months of 2011, TransUnion says. Nationwide, the rate of payments 90 days or more past due on bank-issued cards dropped to 0.74% in the first quarter, down from 1.11% a year ago. The delinquency rate is the lowest level since the third quarter of 1996, TransUnion says. It peaked in the first quarter of 2009 at 1.32%. Improved card-payment habits have come about despite stubbornly high unemployment, says Ezra Becker, vice president of research and consulting in TransUnion’s financial services business unit. Becker says research shows that cards play such an important role in money management during periods of unemployment that users are making an effort to prioritize their payments. One of the main reasons for the gains is that card users continue to pay down their credit card balances. The average credit card debt per borrower dropped to $4,679 for the quarter, down 9% from $5,165 a year ago. TransUnion says balances haven’t been this low since the third quarter of 2000.