Charge-Off Rate on Credit Card Loans, All Commercial Banks
CORCCACBS • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
4.44
Year-over-Year Change
156.65%
Date Range
1/1/1985 - 1/1/2025
Summary
The Charge-Off Rate on Credit Card Loans tracks the percentage of credit card debt that banks have determined is unlikely to be collected from borrowers. This metric is a critical indicator of consumer financial health and potential economic stress.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
This economic indicator represents the proportion of credit card loans that commercial banks have written off as uncollectible, reflecting consumer repayment challenges and overall credit market conditions. Economists use this trend to assess consumer financial stability, credit risk, and potential economic downturns.
Methodology
The rate is calculated by dividing the total value of charged-off credit card loans by the total outstanding credit card loan balance during a specific period.
Historical Context
Policymakers and financial regulators use this data to monitor consumer credit risk, inform lending standards, and assess potential economic vulnerabilities.
Key Facts
- Higher charge-off rates typically indicate increased financial stress among consumers
- The metric is seasonally adjusted to provide more accurate trend analysis
- Charge-off rates can vary significantly during economic recessions
FAQs
Q: What does a charge-off rate indicate?
A: A charge-off rate shows the percentage of credit card debt banks have determined is unlikely to be collected, reflecting consumer repayment difficulties.
Q: How does a high charge-off rate impact the economy?
A: High charge-off rates can signal potential economic stress, reduced consumer spending power, and increased risk in the banking sector.
Q: How often is this data updated?
A: The Federal Reserve typically updates this data quarterly, providing a current snapshot of credit card loan performance.
Q: What causes charge-off rates to increase?
A: Economic downturns, job losses, rising inflation, and increased consumer financial strain can lead to higher charge-off rates.
Q: Are charge-off rates the same across all banks?
A: Charge-off rates can vary between different banks based on their lending practices, customer base, and risk management strategies.
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Citation
U.S. Federal Reserve, Charge-Off Rate on Credit Card Loans, All Commercial Banks [CORCCACBS], retrieved from FRED.
Last Checked: 8/1/2025