60-PLUS DELINQUENCIES
Back to GlossaryDefinition
Loans or accounts with payments that are 60 days or more past due—a key credit-risk metric for lenders.
Summary
60-Plus delinquencies refer to loans or credit accounts where borrowers have missed payments for 60 days or longer. This is a critical indicator used by banks, credit unions, and other lenders to assess credit risk and the health of their loan portfolio. When an account reaches 60+ days delinquent, it signals serious payment difficulties and significantly increases the likelihood of default. Lenders closely monitor this metric because it helps them identify potential losses, adjust lending policies, and maintain regulatory compliance.
Usage Context
Understanding 60-plus delinquencies is crucial when studying credit risk management, loan portfolio analysis, banking regulations, and financial institution performance metrics. This concept is particularly important in courses covering lending practices, credit analysis, and financial risk assessment.
Common Confusions
- Thinking that 60-plus delinquency automatically means the loan is in default
- Confusing delinquency periods with grace periods offered by lenders
- Believing that paying the minimum amount due resets the delinquency clock
- Assuming all lenders use the same delinquency reporting timeline
- Mixing up delinquency status with charge-off status
