The news: The Federal Reserve Bank of Philadelphia recorded the first year-over-year decline in delinquency rates since the fourth quarter of 2021, per a report.

• The share of balances fell YoY across 30+, 60+, and 90+ days past due—the first quarterly decline during Q1 since 2020. (Before the pandemic, delinquencies typically fell each Q1 after the holiday spending blitz subsided.) 
• The proportion of active credit card accounts making only the minimum payment fell 59 basis points from Q4 2025 after a year of consecutive QoQ increases.

Total credit card balances also fell on the quarter, and new credit card accounts continued their yearslong decline. 

Why this matters: Improving credit card metrics signals that consumers are regaining some control over their finances. 

However, those trends may  reflect banks’ decision-making as much as consumer choices. 

Tighter underwriting has boxed out many consumers from getting new lines of credit and contributed to improved delinquency rates. Between Q4 2022 and Q4 2024, banks embarked on one of the longest stretches of credit card loan tightening since the Great Financial Crisis, per the Federal Reserve’s senior loan officer survey.

But there are signs that’s changing: In April, just 5.6% of banks said they were tightening the credit card lending standards—the lowest share in nearly three years.

Our take: As consumers’ financial situation recovers, banks need to plot out their next move. 

Loosening underwriting standards could help invigorate credit card adoption, as would plush welcome offers like Amazon’s $250 sign-up gift card during Prime week. If banks wait too long to get back into acquisition mode, they might find that consumers are no longer in a position to open new credit cards—dragging down payment volume and loan value.

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