US Charge-Off Rate on Credit Card Loans (Seasonally Adjusted)
US Charge-Off Rate on Credit Card Loans (Seasonally Adjusted) stood at 3.82% in Q2 2026, according to FRED (Federal Reserve Bank of St. Louis). It is one of the indicators in the Bank loans and delinquencies table (Value · Quarterly), with a complete series running from Q1 1985 to Q2 2026. The complete series with an interactive chart, free to download.
This indicator in the Bank loans and delinquencies table
| Indicator | Q2-2026 | Q1-2026 | Q4-2025 | Q3-2025 | Q2-2025 | Q1-2025 | Q4-2024 | Q3-2024 | Q2-2024 | Q1-2024 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Charge-off rate - Consumer loans | 2.66 | 2.65 | 2.8 | 2.89 | 2.88 | 3 | 2.97 | 3 | 2.93 | 2.8 | |
| Charge-off rate - Credit cards | 3.82 | 3.82 | 4.09 | 4.15 | 4.21 | 4.46 | 4.56 | 4.64 | 4.59 | 4.43 |
Understanding US Charge-Off Rate on Credit Card Loans (Seasonally Adjusted)
United States net charge-offs as a share of credit card credit forms net loss values from uncollectible credit card balances completely written off bank asset portfolios, published by the Federal Reserve. This figure reflects the difference between total written-off credit card debt and actual amounts recovered during the period. Unlike overdue debt metrics recording temporary payment delays, this indicator confirms debts have lost repayment capacity. Compared to secured consumer segments like auto loans or real estate, revolving card limits carry significantly higher loss risk during negative economic shocks.
Data is recorded quarterly and seasonally adjusted to remove impacts from shopping spending spikes during year-end holidays. Recent reporting periods are typically estimated and will be readjusted in subsequent releases when full data from depository institutions becomes available. When analyzing, consecutive-period comparisons help early identification of personal credit quality deterioration, whereas year-on-year comparisons support long-term risk trend evaluation. Researchers should not confuse this net charge-off rate with uncharged-off overdue debt rates.
Frequently asked questions
- How does the credit card charge-off rate differ from the credit card delinquency rate?
- The delinquency rate only records loans that are past due but still on the books, whereas the charge-off rate reflects the value deemed uncollectible and written off from bank assets.
- What is the purpose of seasonal adjustment for this metric?
- Seasonal adjustment removes distortions caused by regular spending habits and debt-payment cycles occurring at specific times of the year, enabling accurate risk comparisons between consecutive quarters.
- What does a rising credit card charge-off rate signal about the economy?
- This upward trend reflects severe financial pressure on households, indicating a sharp decline in consumers' ability to balance income and debt.