Credit Card Delinquencies Edge Up to 2.5% Across Top Banks

Credit card delinquencies increased to 2.5% among major U.S. banks for July, according to Seeking Alpha's analysis released on August 18. This rise is from 2.48% in June but remains below the pre-pandemic average of 2.68%. During the same time, the banks' average net charge-off rate dropped from 3.42% in June to 3.28% in July. The total credit card lending across the seven banks decreased by 0.2% from June to July, totaling $538.4 billion in July.

The report is based on data from American Express, Bank of America, Bread Financial, Capital One, Citigroup, JPMorgan, and Synchrony. The Federal Reserve's July 2026 Senior Loan Officer Opinion Survey on Bank Lending Practices noted that standards for credit card loans tightened in the second quarter, while demand for credit card loans remained stable.

U.S. payment volumes moderated slightly in July, according to Visa's report on July 28, after reaching a level not seen since fiscal 2019 outside the post-pandemic recovery. Visa CFO Chris Suh explained that the earlier growth was due to factors such as tax refunds, fuel prices, retail promotions, Visa Direct, and FIFA-related spending.

Despite inflation, higher gas prices, and a sense of uncertainty, Synchrony's second-quarter results showed an 8% year-over-year increase in purchase volume, rising from $46.1 billion to $49.8 billion. Synchrony's CFO Brian Wenzel commented on the continued consumer spending, saying that even with rising gas prices and inflation, consumers are still spending in discretionary categories.