Default in Corporate Credit (Card) Portfolios
Corporate credit card statistics are coupled within commercial and industrial loans by most reporting agencies and organizations. There is no evidence in the public domain that strictly commercial, corporate, or business credit card default rates are reported. Consumer credit default or charge-off rates are reported by various agencies and organizations.
- There are multiple data points for credit card default rates. The S&P/Experian Consumer Credit Default Composite Index reported in January 2020 the default rate on credit cards (all types) was 3.28%.
- Creditcards.com reported, "Delinquencies on bank cards fell in the third quarter of 2019, declining further below the 4.33% average that prevailed before the recession, according to the American Bankers Association’s Consumer Credit Delinquency Bulletin." In addition, "bank card delinquencies dipped two basis points to 2.96% of all accounts in the third quarter 2019. The charge-off rate on credit card loans from the top 100 banks was 3.70% in the third quarter of 2019, up from 3.55% the year before."
- Wallet Hub lists 2020s credit card charge off rate at 3.91%, up from 2019's 3.7% rate.
- The Federal Reserve St Louis reports the credit card delinquency rate reported by all commercial banks was 2.42% in 2Q 2020.
- The St. Louis Fed also reports the delinquency rate on commercial and industrial loans at 1.28% for 2Q 2020, as reported by all commercial banks.
- The same Fed reported the charge-off rate on commercial and industrial loans at .61% for the same period.
- Finally, the St. Louis Fed reported the charge-off rate for credit cards at 4.04%, as reported for all commercial banks.
Aside from general research, sources show that some terms related to the average default in corporate credit card debt are interchangeable, such as business, company, and charge-off. In addition, sources like the Federal Reserve classify corporate credit card debt as credit card loans for commercial purposes. Therefore, default rates for corporate credit card portfolios is a subset of the charge-off rate of commercial and industrial loans. Further research was conducted using every variant of terminology related to corporate, default, or credit debt without yielding any additional pertinent data.