Credit card users are becoming more responsible with their money, according to a report from TransUnion, one of the three major credit bureaus in the United States. Account delinquency was at a record low, with statistics the bureau has not seen in 15 years, reports DailyMarkets.com.
The TransUnion report sampled 10 percent of their consumer database, which amounts to about 27 million people, and found that the average balance on their major credit cards – American Express, Discover, Mastercard and Visa – dropped 8.6 percent to $4,965.
The bureau also noted that there was a significant drop in the number of people who had late payments for three or more months, going from 1.21 percent in 2009 to 0.82 percent last year.
More and more consumers are finding it easier to pay off their credit card debt. Paying on time accounts for 35 percent of your credit score, and with consistent and timely payments, those with a low credit score will begin to raise their rating, which could lead to better car loan interest rates.