Credit card delinquencies rise in the U.S. as collection timelines vary by state

Credit card delinquencies in the U.S. rose to nearly 9% in the second quarter of 2024, partly due to high interest rates averaging over 23%. Missed payments can significantly harm credit scores, especially after 30 and 90 days. Under the Fair Credit Reporting Act, delinquent credit card debt stays on credit reports for seven years. However, state laws allow creditors to collect this debt for three to 15 years, depending on the state. After this period, creditors cannot take legal action but may still attempt to collect. Debt can be sold and resold, extending collection efforts indefinitely. Factors like state laws and court judgments can also affect how long creditors can pursue payment. Addressing delinquent debt early can help avoid long-term financial issues.