More Americans are making their credit card payments on time

After racking up a sizeable balance on your credit card, it feels good to make monthly payments when they're due and watch your outstanding amount drop to zero. Plus, you can use our Bill Pay services to schedule payments from your checking account up to a year in advance, so you're not late on your mortgage, utilities and other monthly bills.

If you're conscious about getting your payments in on time, you're like many other Americans. According to a recent report from TransUnion, a major credit-reporting bureau, the national credit card delinquency rate, which is the percentage of borrowers who are 90 days or more delinquent on their general purpose credit cards, declined in the second quarter of 2014. The rate was 1.16 percent, marking a drop from 1.37 percent in the previous quarter and 1.27 percent the same quarter a year ago. 

"Consumers continue to have a good handle on their credit cards, with delinquencies at all-time lows across the spectrum," said Ezra Becker, vice president of research and consulting in TransUnion's financial services business unit. "We observed that delinquency rates are dropping for all age groups, and at relatively similar rates."

Delinquency is highest among younger Americans
The TransUnion data also revealed consumers younger than 30 have the highest delinquency rate of all age groups, at 1.63 percent. This conclusion may not come as a surprise given the income potential of younger individuals. Plus, there's the temptation to get a credit card during college years. With a new level of freedom and access to credit, college kids don't have their parents' watchful eyes to keep them from overspending, which is common among many young adults. However, this is not to say they can't benefit from credit cards.

Although college students may be faced with the chance to go on a shopping spree, credit card use is a great way to teach younger consumers how to build credit and provide access to funds in the event of an emergency. Parents can even add their kids as authorized users on their accounts, thereby providing a method for tracking spending and managing a credit limit. With some careful planning, you can ensure you or your college-bound child properly manages a credit card.

For more information about smart ways to manage your finances, contact Landmark Bank.

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