How low can it go?

The trend of improving delinquency rates within Target’s credit card portfolio just keeps getting better, and in May the percentage of customers past due on their accounts sank to another new low.

Target’s more selective granting of credit and shoppers more judicious use of their cards sent the number of accounts 60 and 90 day past due down to 2.6% and 1.8%, respectively. Those figures are represented continued improvement from comparable April numbers of 2.7% and 1.9% that also set a new low and were a marked improvement from earlier in the year.

What’s impressive about both months is what it says about shoppers’ responsible use of credit during the holidays and a commitment to honor their obligations when bills came due. Had shoppers overreached during the holidays their inability to pay bills would have manifested itself the past few months in higher percentage of past due accounts.

That was the case back in February 2010 when the number of accounts 60 days past due hit a high of 6.1% and the number of accounts 90 days past due reached 4.5%.


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