Credit card delinquency hits 15-year high, but cards remain vital for small businesses
4 reported
According to data from the Federal Reserve Bank of New York released in May, the percentage of credit card balances at least 90 days delinquent rose to 13.12% in the first quarter of 2026, the highest level in 15 years and the most since the period following the 2008 financial crisis. The Wall Street Journal reported on cases of individuals struggling with excessive credit card debt. The article, written by Gene Marks for The Guardian, acknowledges that delinquent balances are rising and some people are struggling, but questions whether Visa and Mastercard are to blame. It notes that credit cards are often viewed negatively, with aggressive sales tactics and high interest rates, but argues they are a blessing for many individuals and small business owners. The article states that credit card financing remains the number one source of financing for small businesses, according to the Federal Reserve’s 2025 Small Business Credit Survey. It advises using credit cards with moderation, paying off balances monthly to minimize interest, and implementing a spending plan or refinancing to manage debt.
What’s reported
The percentage of credit card balances at least 90 days delinquent rose to 13.12% in the first quarter of 2026, according to Federal Reserve Bank of New York data released in May.
This is the highest level in 15 years and the most since the period following the 2008 financial crisis, as reported by the Wall Street Journal.
The article states that credit card financing remains the number one source of financing for small businesses, per the Federal Reserve’s 2025 Small Business Credit Survey.
The article advises using credit cards with moderation, paying off balances monthly, and considering a spending plan or refinancing to manage debt.
Key figures
Gene Marks (author of the article for The Guardian)
Federal Reserve Bank of New York (source of delinquency data)
Wall Street Journal (reported on the delinquency data and individual cases)
Sources: The Guardian
