Credit card data shows delinquencies rose in September

(Reuters) - Credit card delinquency rose for the third straight month in September, data from JPMorgan Chase & Co JPM.N and card issuer Discover Financial Services DFS.N suggested on Monday.

The data add to signs that U.S. consumers are struggling amid rising household debt, after bank results last week pointed to an increase in provisions for future losses.

September delinquencies for JPMorgan rose 1.22 percent, while those at Discover Financial were up 1.64 percent from August. Those at Bank of America also rose 1.56 percent - the second rise in three months.

Credit quality at several banks appears to be deteriorating as lenders target consumers with worse credit ratings to fuel revenue growth at a time when low interest rates are quashing their returns on other loans.

“Delinquency rates have risen in part because lending to subprime borrowers increased significantly in recent years,”’s senior industry analyst Matt Schulz said.

“That brings with it a lot of risk, for both the banks and the consumer.”

JPMorgan said last week that provisions for credit losses across the bank rose 14 percent in the third quarter. Citigroup Inc C.N saw a 15 percent rise.

While delinquency rates remain significantly below the levels seen during the 2008-2009 financial crisis, rising rates would mean higher loan losses for lenders.

U.S. household debts hit a record high after having earlier in the year surpassed its pre-crisis peak, helped by modest rises in mortgage, auto and credit card debt, where delinquencies jumped.

Reporting by Nikhil Subba and Aparajita Saxena in Bengaluru, Writing by Sweta Singh; editing by Patrick Graham