September Update: Consumer Unsecured Posts Record Cure Rates; Credit Card Delinquencies Ease

Quick Insights

Consumer Unsecured: Continued Outperformance, Record Cure Rates

• 30+ Impairments fell 4 bps MoM, outperforming seasonal trends for the seventh time this year.

• Cure rates hit another record high, while charge-offs dropped to 6.7 CDR, the best September on record.

• Strength remains concentrated in Top Grades and higher FICOs, but 3–6 month loan ages saw rising impairments for a third straight month.

Credit Cards: Stabilization After a Volatile Year

• Federal Financial Institutions Examination Council ("FFIEC") data show delinquencies just 50 bps above 2019 levels, while charge-offs remain flat—well below pre-GFC norms.

• Performance has stabilized after early-2024 peaks, with defaults 3–4 CDR below 2011 and delinquencies 70 bps lower.

• Credit card balances continue to rise, though growth has slowed, signaling cautious consumer leverage expansion.