US credit card defaults fall in September--Moody's

* Chargeoffs to resume upward trend later this year

* Moody's sees chargeoffs peaking at 12-13 pct in 2010

NEW YORK Oct 22 (Reuters) - U.S. credit-card chargeoffs fell in September from record highs in August, Moody's Investors Service said on Thursday, as consumers used tax refunds and other economic stimulus proceeds to lower debt.

But delinquencies rose, anticipating more troubles ahead for the industry.

The Moody's credit card charge-off index -- which measures credit card loans that banks do not expect to be repaid -- fell to 10.72 percent in September from a record-high 11.49 percent in August. But payments late more than 30 days rose to 5.97 percent from 5.80 percent.

"The improvement in September's charge-off rate index is due, in part, to the seasonal improvement in early-stage delinquencies earlier in the year," Moody's said in a statement.

The rating agency estimated the charge-off rate index will stabilize during the autumn months and will resume an upward trend towards the end of 2009 and into 2010.

"Rising delinquency rates, along with an expectation of rising unemployment rates, portend higher credit card charge- offs in the months ahead," Moody's said.

Credit card losses usually follow the unemployment trend, which rose in September to 9.8 percent, the highest in 26 years.

The rating agency estimated the charge-off rate index will peak between 12 percent and 13 percent in mid-2010.

Data released by companies earlier this month based on the performance of credit card loans that were securitized showed defaults declined almost across the board, with Bank of America Corp (BAC.N) and Citigroup Inc (C.N) as the worst performers among the biggest card issuers.

Both Citigroup and Bank of America hold the highest exposure to riskier credit card borrowers. (Reporting by Juan Lagorio; editing by Andre Grenon)