American Express consumer credit card delinquencies slightly higher in February

American Express, the world-renowned financial corporation, faced slightly higher delinquencies on its credit cards in February this year. As per the data, the delinquency rate for credit-card loans of 30 days or more stood at around 1.5%, up from 1.4% in January 2021. Card companies consider these delinquencies when the cardholder is late by a minimum of 30 days in their payments. Though the uptick this month is small, it marked the first increase in delinquency rates for American Express since February last year.

Despite rising delinquencies in February, the overall consumer credit card industry performance showed signs of improvement. The data from other card networks such as Visa and Mastercard indicated a reduction in delinquency rates in February compared to the previous month. The delinquency rate for Visa credit-card loans of 30 days or more was 1.2% in February, lower than January. Meanwhile, Mastercard’s delinquency rate fell to 1.15%, after hitting a peak of 1.29% in January 2021.

American Express is facing significant competition from its card network rivals, especially during the pandemic’s economic recession. However, the company is offering exclusive incentives for customers, such as statement credits for online shopping or streaming services. These are likely to have contributed to the marginal increase in delinquencies. Equally, American Express announced that it is partnering with Amazon to offer small-business credit cardholders better rewards on purchases. This new feature is expected to increase the usage of American Express cards among small businesses.

In summary, American Express reported a minor increase in the delinquency rate for its credit-card loans in February compared to January 2021. However, data from other card networks indicates an overall improvement in the credit card industry’s delinquency rate for February. The company is facing significant competition from its card network rivals but is actively encouraging customers by offering incentives and partnering with Amazon to increase usage among small business credit-card holders. Despite the slight increase, American Express has reported a strong performance in the overall credit card industry.



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