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?
The credit card charge-off rate — the share of credit card balances banks have written off as uncollectable — sat at 3.84% in Q1 2026, according to Board of Governors of the Federal Reserve System Call Report data. A charge-off marks the terminal stage of credit card distress: once a bank writes off a balance, it has concluded the borrower will not repay and has absorbed the loss.
Banks are writing off credit card debt at 3.84% — a level last sustained in 2011 and far above the 1.63% pandemic-era low.
Credit card charge-offs are the end of the line for unsecured consumer debt. The delinquency has hardened into a pattern, the collections calls have run their course, and the bank has removed the balance from its books as uncollectable.
The rate sat at 1.63% in Q4 2021 — the stimulus-era bottom, driven by stimulus payments that let households catch up on accounts that otherwise would have defaulted. By Q3 2024 it had climbed to 4.64%. It's eased since, to 3.84% in Q1 2026, but remains at a level not sustained since 2011.
The mechanics are straightforward. Credit Card Delinquency led the charge-off rate by roughly 6 to 9 months — accounts 30-60 days late today are mostly charged off inside a year if they don't cure. The 60-Day Line and the Large-Small Bank Spread both tell us where the losses are being booked: disproportionately at the largest card issuers, who built the decade's subprime growth.
Credit card charge-offs are running multiples higher than the broader All-Loan Charge-Off rate. That gap between cards and everything else is where this cycle's household distress is concentrated. Mortgage charge-offs are at zero. Corporate loan losses are contained. The credit card statement is where the damage is landing.
Explore Further
How has Charge-Off Rate on Credit Card Loans changed over time?
Most affected counties
Counties with the highest delinquency scores in the County Distress Index.
Explore all 3,144 counties →| Period | Value | YoY Change |
|---|---|---|
| Q1 2026 | 3.84% | -0.62 pp |
| Q4 2025 | 4.07% | -0.49 pp |
| Q3 2025 | 4.15% | -0.49 pp |
| Q2 2025 | 4.21% | -0.38 pp |
| Q1 2025 | 4.46% | +0.03 pp |
| Q4 2024 | 4.56% | +0.39 pp |
| Q3 2024 | 4.64% | +0.94 pp |
| Q2 2024 | 4.59% | +1.33 pp |
| Q1 2024 | 4.43% | +1.55 pp |
| Q4 2023 | 4.17% | +1.67 pp |
| Q3 2023 | 3.7% | +1.65 pp |
| Q2 2023 | 3.26% | +1.37 pp |
Frequently Asked Questions
What is a credit card charge-off?
A charge-off occurs when a bank determines a credit card balance is uncollectable — typically after 180 days of non-payment — and writes off the debt as a loss. The debt may still be sold to a collection agency, but the originating bank records it as a loss either way.
How does the charge-off rate relate to delinquency?
Charge-offs are a lagging indicator that follows delinquency. A balance typically moves through 30, 60, 90, 120, then 150 days past due before it is charged off at 180 days. Rising charge-offs confirm that earlier delinquency increases are converting into actual bank losses.
Where does charge-off data come from?
The Federal Reserve publishes charge-off rates quarterly from bank Call Report filings, aggregated across all commercial banks. The current reading is 3.84% for Q1 2026.
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