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Is Subprime Credit-Card Crisis Looming?

Last month, Macy’s announced what some suspected to be a canary in the credit coal mine; credit card delinquencies had taken a huge bite out of results in the second quarter. In a call with analysts, execs warned that the resumption of student loan payments could compound the problem.

Now, MarketWatch asks; Is there a subprime credit-card crisis on the horizon?

According to new data from VantageScore, Generation Z, Millennials, GenX and Baby Boomers with a credit score between 300 and 600 (subprime) experienced a delinquency rate of 10.6% (for those 30 – 59 days past due), in July of this year – up from 9.3% last year.

For primer borrowers, the delinquency rate was just 0.15% in July, up from 0.14% in July of 2022.

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4 thoughts on “Is Subprime Credit-Card Crisis Looming?”

  1. I don’t have any credit cards, own my vehicles and home, and live on what I make. It took a long time to get to this point, but besides taxes, I owe nothing at all. If more did this, we might not be in the shape we are now. Unfortunately, hard work and living within your means are not valued at all.

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