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?
The charge-off rate on all loans at commercial banks was 0.6% 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).
The all-loan charge-off rate has climbed to 0.6% — multiples of the 0.19% low reached in 2021 and elevated for more than two years running.
A charge-off is the moment a bank decides the loan is not coming back.
The Board of Governors reports charge-off rates across all bank-held loans quarterly. In July 2021, during pandemic stimulus, the rate was 0.2. Today it sits at 0.6%, well above that stimulus-era mark and 82% below the GFC-era reading.
The composition is where the read gets clearer. Charge-offs are rising across categories but not uniformly. Credit Card Charge-Offs are running multiples higher than the all-loan rate, doing most of the work. Mortgage Charge-Offs are essentially zero. Auto and consumer loan charge-offs sit in between.
The rate has now been elevated for two years. The post-GFC cycle took charge-offs from roughly 2% in 2011 down to 0.4% by 2017, then held there through 2019. The current rise from the 2021 stimulus-era bottom is the first real regime change in the series since the last crisis. Distress that first showed up as Credit Card Delinquency in 2023 is now hitting bank balance sheets as a realized loss — and the lagged-loss channel is already visible.
Explore Further
How has Charge-Off Rate on All Loans changed over time?
Most affected counties
Counties with the highest default and legal scores in the County Distress Index.
Explore all 3,144 counties →| Period | Value | YoY Change |
|---|---|---|
| Q1 2026 | 0.57% | −0.1 pts |
| 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 |
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 0.6%, 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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