Comments on: Credit Card Delinquency Getting Better And Worse http://www.totalnoid.com/2009/11/24/credit-card-delinquency-getting-better-and-worse/ Random Noid Musings Sat, 20 Mar 2010 01:40:13 -0400 http://wordpress.org/?v=2.8.4 hourly 1 By: DF http://www.totalnoid.com/2009/11/24/credit-card-delinquency-getting-better-and-worse/comment-page-1/#comment-9216 DF Fri, 27 Nov 2009 07:21:02 +0000 http://www.totalnoid.com/?p=4363#comment-9216 First of all, delinquencies did not decline in the 3rd quarter accdg to the Fed Reserve data, so TransUnion is blowing smoke. Second, they lack knowledge of history, as rates have fallen in the 3rd quarter in the past. If it had happened, this would not be the "first time." A far more reliable counter is that delinquencies will rise in Q4, which makes sense given Christmas spending, a much larger social event than back to school. So you're right that the article is rubbish. Not sure about your analysis of late account reset policy. Unless it's a new policy, or a particular quarterly push to get deadbeats to make a payment, it wouldn't cause any sort of dramatic effect, i.e. causing delinquencies to drop, as the same thing had been going on all along. First of all, delinquencies did not decline in the 3rd quarter accdg to the Fed Reserve data, so TransUnion is blowing smoke.

Second, they lack knowledge of history, as rates have fallen in the 3rd quarter in the past. If it had happened, this would not be the “first time.”

A far more reliable counter is that delinquencies will rise in Q4, which makes sense given Christmas spending, a much larger social event than back to school.

So you’re right that the article is rubbish. Not sure about your analysis of late account reset policy. Unless it’s a new policy, or a particular quarterly push to get deadbeats to make a payment, it wouldn’t cause any sort of dramatic effect, i.e. causing delinquencies to drop, as the same thing had been going on all along.

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