Decline in Delinquencies on Experian Credit Reports

- Sep 2, 2020 Covid-190 comments

The Credit Reports Report Fewer Delinquencies 


Another strange thing about Covid-19. While many of us are surviving on a lower income or no income at all, Experian has reported fewer delinquencies on credit reports. A credit card, mortgage, loan, or auto account on your credit report becomes delinquent if you are 30, 60, or 90 days late to pay. Experian reports fewer people than the norm being late on paying their accounts. Therefore, the number of delinquencies of 30, 60, and 90 days late, has gone down, as reported as of August 25.

The Decline In Numbers


During January 2020 and June 2020, Experian reported a decline of an average of 2.4% in delinquencies of 30, 60, 90 day late payments. The decline was seen most for the 30-day late delinquency, at an average of 8.7% down since January.

The 30-day delinquency in New York dropped only 1.8%. The lower percentage New York saw is suspected to be due to New York having been hit the earliest and hardest of all states.

Staggering numbers in other states came in above New York; California had a decline for the 30-day delinquency of 8.2%, Texas of 9.7%, Florida of 10.9%, and Pennsylvania of 11.7%.


The Reasoning Behind Fewer Delinquencies


There are some possible explanations for the fall of delinquencies this past half a year. How can it be there is a smaller percentage of people who were late on paying their accounts when our jobs and financial income were hit so hard?

Forbearance Relief Programs

Due to COVID, many have joined forbearance programs. You usually join a forbearance program by calling the lender of the account, be it the bank, credit card company, mortgage company, and ask them to get you registered. These programs allow you to postpone any payment due on your account from when you enter the program until you exit the program. You would set this up when you hit financial difficult times.  If you do join, then you don’t have to pay anything to your account while you’re part of the program, only once you finish the program. You bypass late payments. If a large percentage of people follow this system, it results in fewer delinquencies overall. you can learn more about forbearance programs here.

Payment Deferred

Payment deferred is when the credit lender of your account agrees to put your account fees on hold until you are financially stable. This would also be set up by contacting your account lender.

Stimulus Relief 

The stimulus relief payment is what we refer to as the one-time payment received by the government during the peak of the virus. The $1,200 check received by all citizens was a great asset to our accounts. This may have been just another factor as to how many of us managed to pay our accounts on time.


As employers have been suspended from their jobs due to the financial hit of COVID 19, these employers are on unemployment insurance instead, and through the CARES Act signed in March, employers received an extra $600 weekly. That’s enough to keep you on your feet and pay your accounts on time.


The Delinquencies Going Onward


How long will this decrease in delinquencies last? As many of us are now exiting forbearance programs, and stimulus money and bonus unemployment money will come to an end, delinquencies may go back up soon. It’s hard to tell for sure, though as we don’t know how COVID will hit us next.

In the meantime, this has been a really nice side effect of COVID.


Was this article helpful?

Rikki Rikki is a full-time contributor for She likes to think of the credit world as a place where each credit card is used to its maximum reward capabilities. Other than that, tulips and blue skies are next on the list for a lovely world.

Leave A Comments

This site uses Akismet to reduce spam. Learn how your comment data is processed.


Recent Posts

Follow us

Click here to subscribe to
our WhatsApp channel

best offers

Chase Ink Business Preferred

Earn 100,000 points after $15,000 spent within the first 3 months.

more info

British Airways Visa Signature Card

Earn a total of 100,000 points after $20,000 spent within the first year.

more info

Chase Sapphire Preferred

Earn 80,000 points after $4,000 spent within the first 3 months.

more info

Iberia Visa Signature Card

Earn a total of 100,000 points after $20,000 spent within the first year.

more info

You May Also Like

Are Credit Cards Still Approving? July Update

Are Credit Cards Still Approving? July Update

COVID -19 has taken everything on a roller coaster (except our kids). The virus affected almost every industry including credit card approvals. At interviewed many applicants who recently applied for credit cards and see if they got approved or...

read more
Find Out Which Cards Still Have Balance Transfers

Find Out Which Cards Still Have Balance Transfers

0% APR balance transfers impacted by Covid-19 American Express, Chase, and Capital One, have completely removed 0% APR balance transfers. 0% APR on balance transfers would allow one too transfer an existing balance to a card which does not charge interest on balances....

read more
Banks Closing Credit Cards: Stay Out Of Trouble

Banks Closing Credit Cards: Stay Out Of Trouble

What Is Happening? Credit card companies around town are closing accounts so as not to expose themselves to the non-profitable risks they face due to Covid-19. Cardholders that have their credit accounts open, yet the card is hardly used, then banks are not interested...

read more
New Amex Financial Relief Program

New Amex Financial Relief Program

Amex has announced in March a new Financial Relief Program to help card holders who can't afford to make payments due to Covid-19. The program offers up to 60 months payment plans with reduced monthly payments, reduced interest rates, and waived fees. I believe this...

read more

Download link sent

Got it *please check your promotional inbox

Error sending download link

Try Again