Portfolio metric measuring the share of loans that are past due but not necessarily yet charged off.
The delinquency rate measures the share of loans in a portfolio that are past due on scheduled payments. It is a core credit-performance metric because it helps lenders and investors see repayment stress before losses are fully realized through charge-offs.
Delinquency rate is an early warning metric. It can rise before charge-offs, reserve stress, or more severe portfolio deterioration becomes visible in reported losses.
The exact reporting method can vary, but the basic logic is straightforward:
Some institutions measure by loan count, while others use delinquent dollar balances relative to the total portfolio. The critical point is that the metric tracks overdue accounts rather than realized loss recognition.
| Metric | What it captures |
| — | — |
| Delinquency Rate | Share of loans that are past due |
| Charge-Off Rate | Share of portfolio already recognized as loss |
| Default Rate | Share of loans in a more severe failure state |
If 40 loans out of a 1,000-loan portfolio are 30 or more days past due, the delinquency rate is 4%. That does not mean the lender has lost 4% of the portfolio, but it does indicate a meaningful level of repayment stress.
Delinquent loans may still be cured. A charge-off rate reflects loans that have already crossed into recognized accounting loss territory.
Some lenders focus on 30-plus-day delinquency, while others break out 30-, 60-, and 90-plus-day buckets or use balance-based reporting.
Delinquency: Underlying late-payment status the metric is measuring.
Charge-Off Rate: Later-stage portfolio-loss metric.
Default Rate: More severe portfolio-failure metric.
Loan Loss Provision: Reserve-building expense often analyzed alongside delinquency trends.