US Auto Loans Delinquent by 90 or More Days Quarterly Trends: Household Debt and Credit Report (2024)

FAQs

What percentage of auto loans are delinquent? ›

US Auto Loans Delinquent by 90 or More Days is at 4.41%, compared to 4.17% last quarter and 3.89% last year. This is higher than the long term average of 3.49%.

In 2022, Gen Z and millennials were 90 days past due on $20 billion in auto loans.

For the poorest 10% of ZIP codes, the delinquency rate increased from 14.9% in the third quarter of 2022 to 21% in the first quarter of 2024, or 41% in relative terms. SOURCES: Federal Reserve Bank of New York/Equifax Consumer Credit Panel and authors' calculations.

Credit card and auto loan delinquencies hit highest rate in a decade and defaults have not peaked. New York Fed report shows percentage of credit card balances that fell into delinquency rose 9% last quarter.

Understanding Delinquency

If you are delinquent on your student loan payment for 90 days or more, your loan servicer will report the delinquency to the three major national credit bureaus. If you continue to be delinquent, your loan can risk going into default.

You can go anywhere from 30 to 90 days without paying before you default, depending on state laws. In the midst of rising car prices and interest rates, more consumers are struggling to pay their auto loans.

In September, the percentage of auto borrowers who were at least 60 days late on their bills rose to 6.11%, according to a Fitch Ratings report obtained by FOX Business.

More Americans are defaulting on their car loans due to larger loan amounts, high interest rates, increased living costs and more.

Yet even though people are working, many are falling behind on their car payments. Younger borrowers and lower-income workers face more difficulties making car payments, indicating increased financial stress, according to the Federal Reserve Bank of New York.

How do I get rid of credit delinquency? While you cannot remove a correctly reported delinquency from your credit report on your own, your creditor can. You can try asking your creditor to forgive the late payment and remove it from your credit history through a goodwill letter.

How many years do most credit delinquencies fall off your credit? ›

Generally speaking, negative information such as late or missed payments, accounts that have been sent to collection agencies, accounts not being paid as agreed, or bankruptcies stays on credit reports for approximately seven years.

According to the most recent delinquency data from the Fed, the 30-day delinquency rate (or the percentage of total outstanding credit card balances currently at least 30 days overdue) rose from 2.97% in the third quarter of 2023 to 3.10% in the fourth quarter of 2023.

Delinquency rates, which fell to historically low levels during the pandemic, have also started to rise despite the still low levels of unemployment. Rising delinquencies are not problematic in and of themselves, however they do require greater attention to find out if they are likely to pose a problem in the future.

Alaska has $7,863 in average credit card debt, more than any other state. Kansas and Wisconsin have the smallest average balances at $5,227 and $5,242. Credit card debt numbers vary quite a bit by state.

Debt peaks between ages 40 and 49 among consumers with excellent credit scores. The largest percentages of the average consumer debt balance are mortgages.

Auto loan delinquency rates are up compared to last year.

4.2% of outstanding auto debt was at least 90 days late in the fourth quarter of 2023, according to the New York Fed, up 11.8% from the fourth quarter of 2022.

How Many People Are Currently in Default on Their Student Loans? By the end of 2021, roughly 3 million people were in student loan default — that's about 7% of all borrowers.

The share of car loans that are 30+ days delinquent is also starting to tick upwards, from 1.5% in mid-2021 to 2.7% by the end of 2022.

The overall U.S. mortgage delinquency rate has held at less than 3% since February 2023.