As prices for gasoline and food rose significantly during the second quarter of the year, more consumers fell behind on their loan payments.
Delinquency rates increased in nine of the 11 categories tracked by the American Bankers Association. In addition, the group's composite ratio, which tracks the rates of 8 different categories, jumped 17 basis points for 2.88 percent during the quarter. The highest delinquency rate – 4.38 percent – was seen in home equity loans.
"A significant increase in gasoline and food prices since the beginning of the year has further stretched family budgets, squeezing consumers and making it difficult for some people to make loan payments," said ABA chief economist James Chessen.
The ABA did note, however, that the 2.88 composite delinquency rate was still down from the 3 percent rate seen a year earlier.
Unfortunately, some delinquencies are unfairly or inaccurately reported to credit bureaus. Consumers may want to review their reports for any improper markings that may result in unjustifiably lowered credit scores.