Charge-Off Rate on Credit Card Loans
Credit card debt written off as uncollectable
What is the current Charge-Off Rate on Credit Card Loans?
The credit card charge-off rate — the share of credit card balances that banks have written off as uncollectable — measures the terminal stage of credit card distress. When banks charge off a balance, they have concluded that the borrower will not repay and have absorbed the loss. Source: Federal Reserve Call Reports.
Charge-Off Rate on Credit Card Loans at 4.2%
Tracking improving relative to recent baseline.
Explore Further
How has Charge-Off Rate on Credit Card Loans changed over time?
| Period | Value | YoY Change |
|---|---|---|
| Q4 2025 | 4.11% | −0.5 pts |
| Q3 2025 | 4.18% | −0.5 pts |
| Q2 2025 | 4.18% | −0.4 pts |
| Q1 2025 | 4.43% | +0.0 pts |
| Q4 2024 | 4.58% | +0.4 pts |
| Q3 2024 | 4.69% | +0.9 pts |
| Q2 2024 | 4.56% | +1.3 pts |
| Q1 2024 | 4.4% | +1.5 pts |
| Q4 2023 | 4.19% | +1.7 pts |
| Q3 2023 | 3.76% | +1.7 pts |
| Q2 2023 | 3.23% | +1.4 pts |
| Q1 2023 | 2.86% | +1.1 pts |
Frequently Asked Questions
What is a credit card charge-off?
A charge-off occurs when a bank determines that a credit card balance is uncollectable — typically after 180 days of non-payment — and writes off the debt as a loss. The debt may still be sold to collection agencies, but the originating bank records it as a loss.
How does the charge-off rate relate to delinquency?
Charge-offs are a lagging indicator that follows delinquency. A borrower typically goes 30, 60, 90, 120, 150, then 180 days past due before the balance is charged off. Rising charge-offs confirm that earlier delinquency increases are converting into actual bank losses.
Where does charge-off data come from?
The Federal Reserve publishes charge-off rates quarterly from bank Call Report filings. Data is available separately for the 100 largest banks and all other banks, allowing comparison across the banking system.
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