Credit card delinquencies in Southern Nevada decline, while total debt increases

Consumers in Las Vegas improved slightly in credit card payments and moved their card debt burden slightly higher in the third quarter, according to TransUnion, one of the nation's three credit-reporting bureaus.

The rate of borrowers 90 or more days past due on their credit card bills, called the delinquency rate, in Las Vegas was 0.96 percent, down from 0.98 percent in the third quarter of 2011. The credit rating agency attributed the decline to a modest economic recovery. The delinquency rate in Las Vegas in the third quarter was higher than the national average.

The national rate was 0.75 percent, a slight increase from 0.71 percent in the third quarter of 2011. This rate had been 0.63 percent in the second quarter, a seasonal low.

"Credit card delinquencies are following a pattern similar to what we observed in 2011, with declines in the first two quarters of the year followed by an increase in the third," said Ezra Becker, vice president of research and consulting in TransUnion's financial services business unit. "That seasonal consistency is encouraging."

Average credit card debt per borrower in Las Vegas increased on a yearly basis by 4.91 percent, rising to $4,996 in the third quarter of this year, from $4,762 in the same period last year. Becker said credit card debt was mirroring 2011, with a decrease in the first quarter followed by two increases over next six months.

"With both delinquencies and debt levels remaining quite low relative to historical norms, we are confident in the continued stability of credit card usage patterns in the short term," she said.

TransUnion also noted that more cards are being issued now, with new credit card originations moving higher, to
3.14 percent in the second quarter relative to the same period last year.

The bureau reported that a significant portion of those went to nonprime borrowers.

Almost 30 percent of new cards issued in the second quarter of this year went to borrowers with credit scores of less than 700, the company said. The 29.55 percent figure was slightly higher than 25.2 percent last year and much higher than the 23.86 percent posted in the second quarter of 2010.

Contact reporter Chris Sieroty at csieroty@reviewjournal.com or 702-477-3893.