Credit card delinquencies among borrowers edged higher in the second quarter of 2026, with consumers 90 or more days past due rising to 2.26%, according to TransUnion’s latest Credit Industry Insights Report released on August 6, 2026.
The borrower-level delinquency rate ticked up from 2.17% in the same quarter a year earlier, marking a 9-basis-point increase year over year. A growing subprime population largely drove the increase, though the rate improved modestly from the prior quarter on a seasonal basis, according to TransUnion’s analysis.
Total credit card balances climbed 4.4% year over year to reach $1.14 trillion in Q2 2026, while the number of consumers carrying a balance grew to 176.9 million. The expansion reflects lenders’ shift toward a more growth-oriented strategy after a period of tightening, as card issuers extended credit across all risk tiers.
High interest rates continue to strain borrowers’ ability to manage their debt. Card rates averaged 21% in February 2026, according to USA Today, making it harder for consumers to pay down balances even as they accumulate new charges. According to PBS, “higher interest rates make debt even more difficult to pay off, a downward spiral causing credit card delinquencies to surge.”
The Q2 2026 delinquency rise represents a shift from Q1 2026, when a different metric—balance-level delinquency—hit 13.12%, its highest point in 15 years. That higher figure reflects the percentage of all credit card balances 90+ days overdue, while the 2.26% borrower-level metric counts the share of individual consumers delinquent on their accounts. Both measures point to ongoing affordability pressures across the credit market, even as lenders maintain disciplined underwriting standards for smaller credit lines.
TransUnion noted that despite rising consumer-level delinquencies, balance-level delinquency rates (1.98% in Q2 2026) remained relatively flat, dropping 2 basis points for the period. This stability suggests that while more borrowers are falling behind, the average size of delinquent balances has not grown proportionally—a sign that lenders are managing risk through smaller credit lines and tighter terms for riskier borrowers.
Sources
- TransUnion — Q2 2026 Credit Industry Insights Report; borrower-level delinquency rate, balance growth, and consumer count
- USA Today — Credit card interest rates averaging 21% in February 2026
- PBS — Analysis of how high interest rates contribute to delinquency surge
