Americans are carrying more credit card debt than banks report. Here are 3 things you can do today

Despite relatively low delinquency rates at some major banks, some Americans may be facing more financial stress than these numbers show.

JPMorgan Chase, Bank of America, and Wells Fargo all reported Q2 2026 credit card delinquencies in the low single digits, with Chase and Bank of America even reporting declines from the previous year. However, the Federal Reserve reported that 12.92% of credit card balances were 90+ days delinquent as of Q2 2026. So, who's right?

It depends on how you measure the data. Banks tend to write off delinquent accounts once they've deemed them uncollectible, while the Federal Reserve continues to track delinquent accounts.

Below, we dive further into why this delinquency gap exists and some everyday tools you can use if you find yourself in credit card trouble.

While the rate of delinquencies has been slowing down slightly quarter to quarter, it remains elevated compared to several years ago. From Q3 2022 to Q1 2026, credit card balances that were 90+ days delinquent rose from 7.6% to 12.8% — a roughly 68% increase in less than four years. That said, one of the reasons the single-digit delinquency rates reported by banks differ from the Fed is how the two measure delinquency.

FDIC-insured banks use a 120- or 180-day timeline to charge off seriously delinquent credit card balances as losses, meaning that if an account is 120 or 180 cumulative days past due, the bank may deem it as uncollectible and remove it from its balance sheet. This is different from the Federal Reserve's method, which uses credit-reporting data to track delinquency. An account that's been charged off by a bank can still be reflected in the Fed's broader credit card delinquency data.

Additionally, banks may be increasingly targeting and servicing those with higher credit scores, which could further explain why delinquency rates by some major banks don't tell the full story about consumers' financial challenges. In Citi's Q2 earnings call, 86% of its credit card loans were to people with FICO Scores of 660 or higher, which is considered prime or better.

At the same time, a July 2026 Federal Reserve survey on bank lending practices showed that, compared to 2005, lending standards have tightened for all types of loans, except commercial and industrial lending.

The main reason that a delinquency or low credit score is so financially impactful isn't the one-time effect; it's because a single slip-up or mistake can cause your situation to snowball into a much larger problem.

If you're dealing with a low credit score, there are several downsides you'll have to manage compared to someone with good to excellent credit:

• Higher APRs: The interest you have to pay related to credit cards, personal loans and more will be higher and more costly.
• Harder to get approved: You're more likely to face increased denials when applying for financial products, like a credit card or mortgage.
• Increased insurance premiums: In most U.S. states, your credit score impacts insurance rates, like home or auto, with lower scores paying more.
• Larger deposits might be required: If something requires a deposit, like renting an apartment or getting a secured credit card, lower scores usually require a higher starting deposit.

It's factors like these that can cause a one-time mishap to hang over your head for months or years. With interest, debt rarely grows in a straight line, but compounds over time and keeps growing exponentially. Two popular methods for paying off debt are referred to as the avalanche method and the snowball method; one involves prioritizing the highest APRs while the other focuses on eliminating the smallest bills first and working up.

If you've struggled with credit card-related stress, odds are you're not alone. From a June CNBC and SurveyMonkey Quarterly Money Survey, three in four (76%) of Americans carry some type of debt, with credit card balances being the most common. Further, 42% of people carry a balance month over month.

Act before the account is 90+ days past due

As far as credit card debt goes, while you never want to carry a balance, the 90+ day delinquent mark is one that you should try especially hard to avoid.

Lenders often classify accounts 90+ days late as seriously delinquent, which causes many models to classify you as high risk. Each checkpoint, meaning from 30 days to 60 days and then finally 90 days delinquent, causes a sharper drop in your credit score, with the 90-day target having the largest impact. The 90-day decrease is typically anywhere from 70 to 100 points. Your financial institution may also take action on your accounts, either freezing or closing them.

Depending on your relationship with your bank or credit union, you can try to contact your card issuer and work with them via a hardship plan. The options will range based on your exact situation, but this could take the form of lower monthly payments or a temporarily reduced interest rate.

Find ways to lower the cost of current debt

If credit card debt is something that you're currently dealing with, there are ways to help reduce the overall cost. One of the most popular methods is using a balance transfer card. This allows you to move a balance from one (or several) cards onto a new one with a lower (or no) interest rate.

If you're dealing with a smaller amount of debt, a card like the Chase Freedom Unlimited® (see rates and fees) could be a great fit. It's a $0 annual fee card that offers at least 1.5% cash back on every purchase. Plus, it has a 15-month 0% intro APR period on both purchases and balance transfers, followed by an 18.24% to 27.74% variable APR. Intro fee of either $5 or 3% of the amount of each transfer, whichever is greater, in the first 60 days. After that, either $5 or 5% of the amount of each transfer, whichever is greater.

For those with more debt, a card with a longer zero-interest period might make sense. The Citi® Diamond Preferred® Card offers up to 21 months of 0% APR on balance transfers completed in the first four months of account opening, then 16.74% - 27.49% after. There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5). This card is primarily for those who are after the balance transfer feature and doesn't offer any rewards.

A balance transfer card can be a great way for some people to manage their debt, but for others it can lead to more temptation and further spending. In some cases, using a debt consolidation loan could make more sense. For example, if you have more debt than could fit on a 0% APR card, you could be able to get a loan for the full amount. Plus, a debt consolidation loan gives you a fixed payoff date, which can help incentivize you to hit your payoff goals.

Upstart could be a good option, especially for those with lower credit scores. Since it factors in more than just your credit history for approvals, Upstart says it approves 41.40% more applicants (in aggregate), compared to a traditional model. If approved, your funds could be available as soon as the next business day, with loan amounts ranging from $1,000 to $75,000.

Focus on repairing and protecting your credit score

Once you're comfortable with your strategy for tackling debt, working on improving your credit score should be your next step.

If you already have fairly good habits but are looking to get more credit for the payments you make, consider Experian Boost®. It's a free feature offered by Experian that allows you to connect various bills, like your utilities or streaming services, to your Experian credit report, potentially raising your FICO Score. Users who had improvements to their credit score saw an average increase of 14 points.

Consistently using (and paying off) a credit card can be another way to grow your score over time. If you're worried about your approval odds, look into the Chime Card™¹. The card doesn't require a credit score to qualify; instead, you just need an active Chime Checking account. ²While the Chime Card is a secured card, this can help prevent people from overspending and save you from any overdraft fees.

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*Results may vary. Some may not see improved scores or approval odds. Not all lenders use Experian credit files, and not all lenders use scores impacted by Experian Boost.

¹To apply for a Chime Card™, Chime® Checking Account is required to apply.

²Money added to Chime Card™ will be held in a secured deposit account as collateral for your Chime Card, and you can spend up to this amount. You can use money deposited in your Secured Deposit Account to pay off your charges at the end of every month.

³Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC. The secured Chime Visa® Credit Card is issued by The Bancorp Bank, N.A. or Stride Bank, N.A., pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see the back of your Card for its issuing bank.

^₄Eligibility requirements and limits apply. See the Chime app for details.