Fitch Ratings said Wednesday the number of credit card defaults surged 1.12 percentage points in January to 11.37 percent, the highest level since a record 11.52 percent in September.
Fitch analysts said the increase was largely driven by a payment holiday for Chase credit cardholders, which pushed more charge-offs into the current period.
The number of cardholders 60 or more days late on payments fell for the second straight month to 4.50 percent, while those 30 days late declined to 5.72 percent.
Consistent with seasonal patterns, the 60-plus day delinquency index is off its 4.54 percent record high set in December and is essentially flat versus year earlier levels.
The 30-day delinquency index is 5 percent below February 2009 rates.
Fewer delinquencies is largely attributable to improvements at Bank of America where a larger number of customers negotiated debt modifications with the company.
"Until we see some meaningful improvement in employment numbers, consumer delinquencies and defaults will remain elevated at or near these levels," said Fitch Managing Director Michael Dean.
Fitch expects U.S. unemployment to peak at 10.4 percent in the second quarter of this year and remain above 10 percent throughout the year.
Despite the defaults, Fitch expects credit card company senior asset-backed securities ratings to remain stable. The outlook for subordinate securities remains "Negative."
(This version updates with new figures for 60-day and 30-day delinquencies from corrected press release from Fitch).)
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