Credit Management among Consumers to Improve in 2010
The latest numbers are in and it looks promising.
In fact, it looks as if credit management among consumers will continue to improve for 2010. Although unemployment continues to remain an obstacle for many consumers, credit card delinquencies will continue to decline in 2010, according to TransUnion.
Although many analysts predict that the rate of credit card delinquencies will slow down during the upcoming year, they will nevertheless decline, which is a good sign for creditors everywhere.
TransUnion expects 90-day credit card delinquencies to drop off nearly 1.04 percent by the end of 2010. Most of these credit card delinquencies will be seen through MasterCard and Visa. In contrast, the third quarter of 2009 saw a decrease of 1.1 percent in 90-day credit card delinquencies.
Delinquencies peaked to their highest rate in the third quarter of 2006, to 1.42 percent. TransUnion used statistics from nearly 27 million individual consumer credit reports. Also included in the study were mortgage rate delinquencies: since 2006, mortgage delinquency rates climbed to an average of 50 percent a year, to nearly 1.96 percent in the last quarter of 2006.
It is important to realize, however, that credit card delinquencies won’t really begin to see solid improvements until jobless rates begin to decline.
The Importance of Timely Payments
The decline in credit card delinquencies comes at a time when good credit is king. Paying your credit card bill on time, each and every month, can mean the difference between being able to secure other types of credit or being stuck without any chance of financing.
In order to be certain that your credit card company receives your timely credit card payment, considering signing up for an online bill payment system, either through your bank or credit card company website. It may also help to set up automatic monthly payments, if necessary, to eliminate the chance of missing a monthly payment.
The certainty of being able to secure credit is only accomplished by maintaining an excellent credit score; and to do that, you need to always pay your credit card bills – as well as any other monthly obligation or bill – on time, every month.
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