Charge-Off Rate on All Loans

All consumer loans written off as uncollectable

Delinquency Rate on Credit Card Loans is currently elevated — historically leads this indicator by 3 quarters. Delinquency Rate on Credit Card Loans · View projections

What is the current Charge-Off Rate on All Loans?

ALL-LOAN CHARGE-OFF RATE
0.61% ↑ Worsening
of all loan balances charged off as losses

The charge-off rate on all loans at commercial banks was 0.61% in the latest quarter, according to the Federal Reserve. Charge-offs represent debt that banks have written off as uncollectible — the final stage of the default cycle. Rising charge-offs confirm that delinquencies are translating into actual losses. Source: Federal Reserve via FRED (CORALACBN).

Charge-Off Rate on All Loans at 0.6%

Tracking improving relative to recent baseline.

Explore Further

How has Charge-Off Rate on All Loans changed over time?

CSV Chart Card
Charge-Off Rate on All Loans over time
Charge-off rate on all consumer loans, percentage
Charge-Off Rate on All Loans
Historical data
Quarterly · Board of Governors via FRED
Period Value YoY Change
Q4 2025 0.61% −0.1 pts
Q3 2025 0.59% −0.1 pts
Q2 2025 0.6% −0.1 pts
Q1 2025 0.64% +0.0 pts
Q4 2024 0.68% +0.1 pts
Q3 2024 0.64% +0.2 pts
Q2 2024 0.65% +0.2 pts
Q1 2024 0.63% +0.2 pts
Q4 2023 0.63% +0.3 pts
Q3 2023 0.49% +0.2 pts
Q2 2023 0.46% +0.2 pts
Q1 2023 0.39% +0.2 pts

Frequently Asked Questions

What is the charge-off rate on all loans?

The charge-off rate measures the percentage of total loans that banks write off as uncollectible losses. At 0.61%, it reflects the aggregate loss rate across all commercial bank loan portfolios.

Why do charge-offs matter?

Charge-offs are the end of the default pipeline: delinquency → serious delinquency → charge-off. Rising charge-offs confirm that earlier delinquency signals have translated into actual bank losses.

Where does this data come from?

Published quarterly by the Federal Reserve Board, available via FRED series CORALACBN.

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Why does Charge-Off Rate on All Loans matter?

Charge-Off Rate on All Loans is one of 91 indicators in the American Distress Index's legal filings layer — the signal that predicted the 2008 crisis two years before delinquency data confirmed it.
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