Delinquency rates improve again

Delinquency trends in Target’s credit card portfolio improved sharply during November after several months of holding steady. Accounts 60 days past due accounted for 4.6% of the receivables portfolio in November, a solid decline from the 4.9% level recorded during the previous three months. Accounts 90 days past due have accounted for 3.3% of the portfolio, compared with the 3.5% level seen during the previous four months.

The November delinquency figures are at their lowest level of the year, and in the case of the 60-day figure well below the peak of 6.1% seen back in February. The same is true of the 90-day figure, which is well below the 4.5% figure seen in February. The further decline in the delinquency rate seen in November after a period of stabilization during the summer and fall bodes well for holiday sales growt, as card holders have the capacity to spend.