By Alexander Flores, Debt Buyer & Triton Financial Solutions, LLC · Last updated: October 22, 2026
The Federal Reserve’s latest quarterly release on charge-off and delinquency rates at U.S. commercial banks, last updated August 25, 2026, shows credit card charge-offs holding at 3.82% (seasonally adjusted) in the second quarter of 2026, unchanged from the first quarter and well below the 4.69% peak recorded in Q3 2024. Credit card delinquency eased to 2.85%. For creditors deciding whether to sell charged-off receivables, and for buyers planning their 2027 budgets, this data sets the context for the next round of portfolio sales.
This article walks through what the numbers say, what they do not say, and how a seller or buyer can use them. Every figure below comes directly from the Federal Reserve tables linked in the Sources section. Nothing here is legal, tax, or investment advice.
What did the Fed report for Q2 2026 charge-off rates?
Seasonally adjusted credit card charge-offs at all U.S. commercial banks were 3.82% in Q2 2026, flat from Q1. Total consumer loan charge-offs were 2.66%, and charge-offs on all loans and leases were 0.55%.
The Fed defines charge-offs as the value of loans removed from the books and charged against loss reserves, net of recoveries, expressed as an annualized percentage of average loans outstanding. That means the rate measures new losses flowing out of bank balance sheets in a quarter. Those charged-off balances are what eventually becomes the supply of charged-off paper in the secondary market.
Quarter over quarter, the picture is stable:
- Credit card charge-offs: 3.82% in Q2 2026, 3.82% in Q1 2026, 4.09% in Q4 2025.
- Other consumer loans (which includes auto and personal installment loans): 1.21% in Q2 2026, up from 1.17% in Q1.
- Total consumer loans: 2.66% in Q2 2026, versus 2.65% in Q1.
How do Q2 2026 rates compare with prior quarters?
Credit card charge-offs are down from 4.19% a year earlier (Q2 2025) and from a 4.69% high in Q3 2024. Delinquency fell to 2.85% from 3.04% a year earlier.
The table below pulls the seasonally adjusted series for the main consumer categories. Delinquency rates measure loans 30 or more days past due (plus nonaccrual), so they are a forward signal; charge-offs are the realized loss.
| Quarter (SA) | Credit card charge-off rate | Credit card delinquency rate | Other consumer charge-off rate | Other consumer delinquency rate | All loans & leases charge-off rate |
|---|---|---|---|---|---|
| 2026:Q2 | 3.82% | 2.85% | 1.21% | 2.33% | 0.55% |
| 2026:Q1 | 3.82% | 2.91% | 1.17% | 2.28% | 0.56% |
| 2025:Q4 | 4.09% | 2.95% | 1.21% | 2.27% | 0.58% |
| 2025:Q3 | 4.18% | 2.99% | 1.23% | 2.33% | 0.63% |
| 2025:Q2 | 4.19% | 3.04% | 1.20% | 2.38% | 0.61% |
| 2024:Q3 | 4.69% | 3.20% | 1.19% | 2.19% | 0.68% |
Source: Board of Governors of the Federal Reserve System, Charge-Off and Delinquency Rates on Loans and Leases at Commercial Banks, seasonally adjusted tables, last updated August 25, 2026.
Two patterns stand out. First, credit card losses have come down steadily for about a year and then paused. Second, “other consumer” loans have not followed the same path: both charge-offs and delinquency in that bucket are roughly where they were a year ago, and delinquency ticked up in Q2.
Does a lower charge-off rate mean less debt for sale?
Not necessarily. A rate is a percentage of balances, so total charged-off dollars depend on loan volume too. The Fed rate shows loss intensity, not the size of the portfolio supply.
This is a common misreading. If card balances outstanding grow while the charge-off rate stays flat, the dollar amount of charged-off receivables can still rise. Bank sale decisions also depend on internal recovery strategy, agency performance, accounting, and regulatory expectations, not only on the loss rate. The Fed release does not report dollar volumes of portfolios sold, and we will not guess at that number here.
What the data does tell sellers is that the loss environment has been stable for two quarters. Stable conditions tend to make portfolio performance easier for buyers to model, which matters more to pricing than any single headline rate.
What does stable credit card loss data mean for debt sellers?
It means buyers can underwrite with more confidence. Sellers with complete files — clean data tapes, media, and chain of title — are best positioned to benefit from predictable bidding.
From a desk perspective, the practical questions for a seller in late 2026 are about file readiness, not market timing:
- Is the data tape complete? Charge-off date, last payment date, balance at charge-off, current balance, state, and original creditor fields drive every bid.
- Is media available? Statements, applications, and terms documents affect what buyers can do with an account.
- Is the chain of title clean? For resale paper, buyers need every bill of sale back to the originator.
- Spot or forward flow? A stable loss environment can make a forward flow agreement easier to price, because the buyer can project future tranches.
If you are a creditor weighing a sale, our seller desk explains the confidential process: the file is shared with screened buyers only after an NDA, and it never appears on a public auction list.
Why are “other consumer” loans worth watching?
Because they are not improving like credit cards. Other consumer delinquency rose to 2.33% in Q2 2026 from 2.28% in Q1, while charge-offs rose to 1.21% from 1.17%.
The Fed’s “other consumer” category covers consumer loans that are not credit cards — which includes auto loans and personal installment loans held by commercial banks. It does not break those out separately in this table, so we will not assign the move to any one product. The point for the secondary market is simple: installment and auto deficiency paper may behave differently from card paper over the next few quarters, and buyers should model asset classes separately rather than applying a single “consumer credit” assumption.
For buyers, this is an argument for asking for asset-class-specific tapes and for reviewing charge-off vintages carefully. For sellers of installment or auto deficiency receivables, it is a reminder that buyers will look hard at last-payment-date distribution and state mix.
What does this data mean for debt buyers?
Buyers get a steadier card loss backdrop and a softer signal in installment credit. Budget by asset class, verify licensing for each state in a file, and ask for complete media before bidding.
Practical takeaways for buyers:
- Card paper: Two flat quarters at 3.82% suggest fewer surprises in fresh card charge-off vintages from banks, though every portfolio prices on its own data.
- Installment and auto paper: The small Q2 uptick in “other consumer” delinquency is worth tracking in the Q3 release.
- Licensing first: Many states require debt buyer licensing or registration. Check state requirements before you bid; the DebtHub state resources are a starting point, not a substitute for your own counsel.
- Qualify once: Our buyer desk works with 200+ qualified buyers. Operating companies sign an NDA and pass licensing review before receiving working tapes.
How fast can a charged-off portfolio sale close?
On a complete file, a DebtMarket sale typically closes in 1–14 days. Speed depends on tape quality, media, chain of title, and how quickly both sides sign the purchase and sale agreement.
Market data does not change how long a well-run closing takes; file preparation does. The steps on our desk are consistent:
- Intake and NDA.
- Tape review and confidential marketing to qualified buyers.
- Bids and selection.
- Purchase and sale agreement (PSA) negotiation and signing.
- Funding and file transfer.
Learn the terms used at each step in DebtHub, our free education library for creditors and buyers.
What is the difference between charge-off rate and delinquency rate?
Delinquency counts loans 30+ days past due or on nonaccrual. Charge-off counts loans written off as losses, net of recoveries. Delinquency usually leads; charge-offs follow months later.
That lag is why both series matter. Card delinquency has fallen for several quarters (3.20% in Q3 2024 to 2.85% in Q2 2026), which helps explain why charge-offs have come down. When delinquency in a category rises — as “other consumer” did slightly in Q2 — it can be an early indicator of future charge-offs, though it is not a forecast.
| Term | What it measures | Why it matters in a debt sale |
|---|---|---|
| Delinquency rate | Share of loans 30+ days past due or nonaccrual | Early signal of future charge-off supply |
| Charge-off rate | Annualized net losses as share of average loans | Measures loss flow into charged-off inventory |
| Charge-off date | When an individual account was written off | Core pricing field on every data tape |
| Chain of title | Documented ownership history of an account | Required for buyers to confirm what they own |
When is the next Fed charge-off release?
The Fed publishes this release quarterly. Q2 2026 data was last updated August 25, 2026; Q3 2026 data is expected in the next quarterly update. Check the Fed’s release page for the official schedule.
We will cover the Q3 numbers in DebtMarket News once they are published, with the same approach: official data, linked and dated, plus desk commentary on what it means for selling and buying charged-off receivables.
Key takeaways
- Credit card charge-offs at U.S. commercial banks held at 3.82% (SA) in Q2 2026, down from 4.19% a year earlier.
- Credit card delinquency eased to 2.85% from 2.91% in Q1.
- “Other consumer” loans moved the other way: delinquency 2.33%, charge-offs 1.21%, both up slightly from Q1.
- Rates measure loss intensity, not dollar supply. Do not read a lower rate as “less paper.”
- For sellers, file readiness drives outcomes. For buyers, model asset classes separately.
Work with the DebtMarket desk
DebtMarket is the confidential debt brokerage desk of Triton Financial Solutions, LLC. Sellers reach 200+ qualified buyers under NDA, with no public auction and no shopped files. Complete files typically close in 1–14 days.
- Creditors: Sell a portfolio confidentially
- Buyers: Qualify for working tapes
- Education: Explore DebtHub
This article is general market commentary, not legal, tax, accounting, or investment advice.
Sources
- Board of Governors of the Federal Reserve System, “Charge-Off and Delinquency Rates on Loans and Leases at Commercial Banks” — release page, last update August 25, 2026: https://www.federalreserve.gov/releases/chargeoff/default.htm (verified live Oct 22, 2026)
- Charge-off rates, all banks, seasonally adjusted: https://www.federalreserve.gov/releases/chargeoff/chgallsa.htm (verified live Oct 22, 2026)
- Delinquency rates, all banks, seasonally adjusted: https://www.federalreserve.gov/releases/chargeoff/delallsa.htm (verified live Oct 22, 2026)