Debt Stress

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?

CREDIT CARD CHARGE-OFF RATE
4.11% ↓ Improving
of credit card balances charged off as losses
One year ago
4.58% ↓ Improving
down 0.5 points since Q4 2024

Charge-Off Rate on Credit Card Loans: 4.11% as of 2025-Q4, and improving. Source: Board of Governors via FRED.

Banks are writing off credit card debt at the fastest pace since 2011

Board of Governors data. At 4.1%, the charge-off rate has more than doubled from its 1.6% pandemic low. Charge-offs trail delinquencies — this is the bill coming due.

Source: Board of Governors via FRED · Latest: 2025-Q4

Explore Further

How has Charge-Off Rate on Credit Card Loans changed over time?

CSV Chart Card
Credit card charge-offs eased slightly from their 2024 peak
Charge-off rate on credit card loans, percentage
Charge-Off Rate on Credit Card Loans
Historical data
Quarterly · Board of Governors via FRED
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 Charge-Off Rate on Credit Card Loans?

Credit card debt written off as uncollectable

Why does Charge-Off Rate on Credit Card Loans matter for financial distress?

Charge-Off Rate on Credit Card Loans is one of the indicators tracked by the American Distress Index (ADI), which measures five dimensions of U.S. household financial distress: Buffer Depletion, Debt Stress, Financial Conditions, Cost Pressure, and Labor Market disruption. Changes in this indicator contribute to the overall distress picture.

Where does the Charge-Off Rate on Credit Card Loans data come from?

This data comes from Board of Governors via FRED. More information: https://fred.stlouisfed.org/series/CORCCACBS. The American Distress Index updates this indicator quarterly.

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Why does Charge-Off Rate on Credit Card Loans matter?

Charge-Off Rate on Credit Card Loans is one of 91 indicators in the American Distress Index's debt stress layer — the signal that predicted the 2008 crisis two years before delinquency data confirmed it.
View methodology →
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