The Company’s classes of receivables within the two portfolio segments are depicted in the following table (dollars in millions):


	December 31,
	2023		2022
Credit card loans(1)(2)	$	102,259	$	90,113
Other loans(3)
Private student loans(4)	10,352		10,308
Personal loans	9,852		7,998
Other loans	5,946		3,701
Total other loans	26,150		22,007
Total loan receivables	128,409		112,120
Allowance for credit losses	(9,283)		(7,374)
Net loan receivables	$	119,126	$	104,746

(1)Amounts include carrying values of $14.8 billion and $13.5 billion underlying investors’ interest in trust debt at December 31, 2023 and 2022, respectively, and $15.6 billion and $12.2 billion in seller’s interest at December 31, 2023 and 2022, respectively. See Note 5: Credit Card and Private Student Loan Securitization Activities for additional information.

(3)Accrued interest receivable on private student, personal and other loans, which is presented as part of other assets in the Company’s consolidated statements of financial condition, was $522 million, $69 million and $21 million, respectively, at December 31, 2023 and $468 million, $49 million and $11 million, respectively, at December 31, 2022.

As part of credit risk management activities, on an ongoing basis, the Company reviews information related to the performance of a customer's account with the Company and information from credit bureaus, such as FICO or other credit scores, relating to the customer's broader credit performance. The Company actively monitors key credit quality indicators, including FICO scores and delinquency status, for credit card, private student and personal loans. These indicators are important to understand the overall credit performance of the Company's customers and their ability to repay.

FICO scores are generally obtained at the origination of the account and are refreshed monthly or quarterly thereafter to assist in predicting customer behavior. Historically, the Company has noted that accounts with FICO scores below 660 have larger delinquencies and credit losses than those with higher credit scores.

The following table provides the distribution of the amortized cost basis (excluding accrued interest receivable presented in other assets) by the most recent FICO scores available for the Company's customers for credit card, private student and personal loan receivables (dollars in millions):


	Credit Risk Profile by FICO Score
	December 31,
	2023								2022
	660 and Above				Less than 660 or No Score				660 and Above				Less than 660 or No Score
	$		%		$		%		$		%		$		%
Credit card loans	$	82,238	80	%	$	20,021	20	%	$	73,827	82	%	$	16,286	18	%
Private student loans by origination year(1)
2023	$	1,010	94	%	$	69	6	%
2022	1,495		95	%	85		5	%	$	1,172	94	%	$	77	6	%
2021	1,468		94	%	91		6	%	1,668		95	%	81		5	%
2020	1,180		94	%	75		6	%	1,365		95	%	65		5	%
2019	1,039		93	%	76		7	%	1,221		95	%	67		5	%
Prior	3,498		93	%	266		7	%	4,306		94	%	286		6	%
Total private student loans	$	9,690	94	%	$	662	6	%	$	9,732	94	%	$	576	6	%
Personal loans by origination year
2023	$	5,149	98	%	$	100	2	%
2022	2,604		93	%	187		7	%	$	4,270	98	%	$	77	2	%
2021	1,049		92	%	91		8	%	1,958		96	%	91		4	%
2020	355		92	%	29		8	%	790		95	%	40		5	%
2019	169		88	%	22		12	%	444		92	%	38		8	%
Prior	78		80	%	19		20	%	249		86	%	41		14	%
Total personal loans	$	9,404	95	%	$	448	5	%	$	7,711	96	%	$	287	4	%


	December 31,
	2023						2022
	30-89 Days Delinquent		90 or More Days Delinquent		Total Past Due		30-89 Days Delinquent		90 or More Days Delinquent		Total Past Due
Credit card loans	$	2,038	$	1,917	$	3,955	$	1,250	$	1,028	$	2,278
Private student loans by origination year(1)
2023	$	—	$	—	$	—
2022	7		2		9		$	—	$	—	$	—
2021	18		6		24		6		1		7
2020	20		7		27		14		3		17
2019	24		9		33		19		5		24
Prior	132		46		178		128		36		164
Total private student loans	$	201	$	70	$	271	$	167	$	45	$	212
Personal loans by origination year
2023	$	26	$	8	$	34
2022	44		16		60		$	12	$	3	$	15
2021	20		8		28		15		6		21
2020	7		2		9		8		2		10
2019	5		2		7		6		2		8
Prior	2		3		5		6		3		9
Total personal loans	$	104	$	39	$	143	$	47	$	16	$	63


	For the Year Ended December 31, 2023
	Credit Card Loans		Private Student Loans		Personal Loans		Other Loans		Total Loans
Balance at December 31, 2022	$	5,883	$	839	$	595	$	57	$	7,374
Cumulative effect of ASU No. 2022-02 adoption(1)	(66)		—		(2)		—		(68)
Balance at January 1, 2023	5,817		839		593		57		7,306
Additions
Provision for credit losses(2)	5,476		152		363		28		6,019
Deductions
Charge-offs	(4,481)		(155)		(290)		(1)		(4,927)
Recoveries	807		22		56		—		885
Net charge-offs	(3,674)		(133)		(234)		(1)		(4,042)

Balance at December 31, 2023	$	7,619	$	858	$	722	$	84	$	9,283

	For the Year Ended December 31, 2022
	Credit Card Loans		Private Student Loans		Personal Loans		Other Loans		Total Loans
Balance at December 31, 2021	$	5,273	$	843	$	662	$	44	$	6,822
Additions
Provision for credit losses(2)	2,233		99		24		13		2,369
Deductions
Charge-offs	(2,417)		(126)		(159)		—		(2,702)
Recoveries	794		23		68		—		885
Net charge-offs	(1,623)		(103)		(91)		—		(1,817)

Balance at December 31, 2022	$	5,883	$	839	$	595	$	57	$	7,374

	For the Year Ended December 31, 2021
	Credit Card Loans		Private Student Loans		Personal Loans		Other Loans		Total Loans
Balance at December 31, 2020	$	6,491	$	840	$	857	$	38	$	8,226


Additions
Provision for credit losses(2)	229		67		(75)		6		227
Deductions
Charge-offs	(2,255)		(89)		(190)		—		(2,534)
Recoveries	808		25		70		—		903
Net charge-offs	(1,447)		(64)		(120)		—		(1,631)

Balance at December 31, 2021	$	5,273	$	843	$	662	$	44	$	6,822

(2)Excludes a $1 million, $10 million and $9 million adjustment to the liability for expected credit losses on unfunded commitments for the years ended December 31, 2023, 2022 and 2021, respectively, as the liability is recorded in accrued expenses and other liabilities in the Company’s consolidated statements of financial condition.

The allowance for credit losses was approximately $9.3 billion at December 31, 2023, which reflects a $1.9 billion build from the amount of the allowance for credit losses at December 31, 2022. The build in the allowance for credit losses between December 31, 2023 and December 31, 2022, was primarily driven by loan growth, increasing delinquencies, and macroeconomic variables impacting household cash flows.

The allowance estimation process begins with a loss forecast that uses certain macroeconomic variables and multiple macroeconomic scenarios among its inputs. In estimating the allowance at December 31, 2023, the Company used a macroeconomic forecast that projected the following weighted average amounts: (i) unemployment rate ending 2024 at 4.17% and, within the Company’s reasonable and supportable period, peaking at 4.26% in the second quarter of 2025 and (ii) 1.36% growth rate in real gross domestic product in 2024.

In estimating expected credit losses, the Company considered the uncertainties associated with borrower behavior and payment trends, as well as recent and expected macroeconomic conditions, such as high consumer price inflation and the fiscal and monetary policy responses to that inflation. The Federal Reserve raised its federal funds rate target range substantially during 2022 and the first three quarters of 2023 in an effort to slow economic growth and reduce inflation. Although real GDP growth and labor market conditions have exceeded most economists’ expectations this year, restrictive monetary policy, as manifested in relatively high interest rates, typically precedes weaker consumer credit conditions caused by rising unemployment as economic growth slows. Credit performance in the Company’s lending portfolios has evolved in line with its expectations this year, but may weaken if the economy fails to avert a recession in response to tighter credit conditions or other factors. The Company assessed the prospects for various macroeconomic outcomes in setting its allowance for credit losses.

The forecast period the Company deemed to be reasonable and supportable was 18 months for all periods presented. The 18 months reasonable and supportable forecast period was deemed appropriate given the current economic conditions. For all periods presented, the Company determined that a reversion period of 12 months was appropriate for the same reason. The Company applied a weighted reversion method to provide a more reasonable transition to historical losses for all loan products for all periods presented.

Net charge-offs of principal are recorded against the allowance for credit losses, as shown in the preceding table. Information regarding net charge-offs of interest and fee revenues on credit card and other loans is as follows (dollars in millions):


	For the Years Ended December 31,
	2023		2022		2021
Interest and fees accrued subsequently charged off, net of recoveries (recorded as a reduction of interest income)	$	681	$	303	$	286
Fees accrued subsequently charged off, net of recoveries (recorded as a reduction to other income)	$	192	$	100	$	75


	For the Twelve Months Ended December 31, 2023
Credit card loans	$	4,481
Private student loans by origination year
2023	$	—
2022	4
2021	17
2020	21
2019	24
Prior	89
Total private student loans	$	155
Personal loans by origination year
2023	$	19
2022	119
2021	81
2020	33
2019	24
Prior	14
Total personal loans	$	290

The amortized cost basis (excluding accrued interest receivable presented in other assets) of delinquent and non-accruing loans in the Company’s loan portfolio is shown below for each class of loan receivables (dollars in millions):(1)


	30-89 Days Delinquent		90 or More Days Delinquent		Total Past Due		90 or More Days Delinquent and Accruing		Total Non-accruing(2)
December 31, 2023
Credit card loans	$	2,038	$	1,917	$	3,955	$	1,881	$	197
Other loans
Private student loans	201		70		271		69		8
Personal loans	104		39		143		37		11
Other loans	39		19		58		3		53
Total other loans	344		128		472		109		72
Total loan receivables	$	2,382	$	2,045	$	4,427	$	1,990	$	269

December 31, 2022
Credit card loans	$	1,250	$	1,028	$	2,278	$	1,003	$	176
Other loans
Private student loans	167		45		212		45		8
Personal loans	47		16		63		16		7
Other loans	13		12		25		1		23
Total other loans	227		73		300		62		38
Total loan receivables	$	1,477	$	1,101	$	2,578	$	1,065	$	214

(2)The Company estimates that the gross interest income that would have been recorded under the original terms of non-accruing credit card loans was $37 million, $23 million and $28 million for the years ended December 31, 2023, 2022 and 2021, respectively. The Company does not separately track the amount of gross interest income that would have been recorded under the original terms of loans. Instead, the Company estimated this amount based on customers’ current balances and most recent interest rates.

The Company has internal loan modification programs that provide relief to credit card, private student and personal loan borrowers who are experiencing financial hardship. The internal loan modification programs include both temporary and permanent programs, which vary by product. External loan modification programs, through third party consumer credit counseling agencies, are also available for credit card and personal loans. Those programs feature interest rate reductions, payment delays, term extensions, or a combination thereof.

For credit card customers, the Company offers both temporary and permanent hardship programs. The temporary hardship programs consist of an interest rate reduction lasting for a period no longer than 12 months. Charging privileges on these accounts are generally suspended while in the program. However, if the customer meets certain criteria, charging privileges may be reinstated following completion of the program.

The permanent modification program involves closing the account, changing the structure of the loan to a fixed payment loan with a maturity no longer than 72 months and reducing the interest rate on the loan. The permanent modification program does not typically provide for the forgiveness of unpaid principal, but may allow for the reversal of certain unpaid interest or fee assessments. The Company also makes permanent loan modifications for customers who request financial assistance through external sources, such as a consumer credit counseling agency program. These loans typically receive a reduced interest rate, typically continue to be subject to the original minimum payment terms and do not normally include waiver of unpaid principal, interest or fees.

To assist private student loan borrowers who are experiencing temporary financial difficulties but are willing to resume making payments, the Company has offered a payment delay (in the form of hardship forbearance or temporary payment reduction), or a payment delay (in the form of a temporary payment reduction) combined with a temporary interest rate reduction. During 2023, programs were offered up to six consecutive months at one time with a lifetime usage cap, most commonly, of 12 months.

For personal loan customers, the Company offers various payment programs, including temporary and permanent programs, in certain situations. The temporary programs normally consist of reducing the minimum payment for no longer than 12 months and, in certain circumstances, the interest rate on the loan is reduced. The permanent programs involve extending the loan term and, in certain circumstances, reducing the interest rate on the loan. The total term of the loan, including modification, may not exceed nine years. The Company also allows permanent loan modifications for customers who request financial assistance through external sources, similar to the credit card customers discussed above. Payments are modified based on the new terms agreed upon with the credit counseling agency.

In addition to the programs described above, the Company will in certain cases accept partial payment in full satisfaction of the outstanding receivable. This is a form of principal forgiveness also known as a settlement. The difference between the loan balance and the amount received in settlement is recorded as a charge-off.

The Company monitors borrower performance after using payment programs or forbearance. The Company believes the programs are useful in assisting customers experiencing financial difficulties and allowing them to make timely payments. In addition to helping customers with their credit needs, these programs are designed to maximize collections and ultimately the Company’s profitability. The Company plans to continue to use payment programs to provide relief to customers experiencing financial difficulties.

ASU No. 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, became effective for the Company on January 1, 2023. The new guidance eliminated Subtopic 310-40, Troubled Debt Restructurings, and implemented enhanced disclosure requirements regarding loan modifications to borrowers experiencing financial difficulty. The new disclosures are required to be applied on a prospective basis. There will be no comparative disclosures to prior periods until such time as both periods disclosed are subject to the new guidance.

The following table provides the period-end amortized cost basis, by modification category, of loans to borrowers experiencing financial difficulty that entered a modification program during the period (dollars in millions). Some of the loans presented in the table below may no longer be enrolled in a program at period-end:


	For the Twelve Months Ended December 31,
		2023
Credit card loans(1)(2)
Interest rate reduction		$	2,330
Total credit card loans(3)		$	2,330
% of total class of financing receivables		2.28		%

Private student loans(1)
Payment delay(4)		$	33
Interest rate reduction and payment delay(4)		143
Total private student loans(3)		$	176
% of total class of financing receivables		1.70		%

Personal loans(1)
Payment delay(4)		$	10
Term extension(5)		29
Interest rate reduction and payment delay(4)		65
Interest rate reduction and term extension(5)		29
Total personal loans(3)		$	133
% of total class of financing receivables		1.35		%

(1) Accrued interest receivable (including unbilled accrued interest receivable for credit card loans) on modified loans to borrowers experiencing financial difficulty, which is presented as part of other assets in the Company's condensed consolidated statements of financial condition, was immaterial at December 31, 2023.

(5) The Company defines term extensions as only those modifications for which the maturity date is extended beyond the original contractual maturity date by virtue of a change in terms other than a payment delay as defined above. Modifications to credit card loans are not considered term extensions because credit card loans do not have a fixed repayment term.

The only non-cancellable commitments the Company has to lend additional funds to borrowers experiencing financial difficulty relate to certain private student loans. As of December 31, 2023, the amount of such commitments associated with loans modified during the periods presented was immaterial.

The following table provides information on the financial effects of loan modifications to borrowers experiencing financial difficulty, by modification type, made during the period (dollars in millions):


	For the Twelve Months Ended December 31,
		2023
Credit card loans
Weighted-average interest rate reduction		13.85		%
Principal forgiven		$	121
Interest and fees forgiven(1)		$	117

Private student loans
Weighted-average interest rate reduction		8.91		%
Payment delay duration (in months)(2)		6 to 12
Principal forgiven		$	—

Personal loans
Weighted-average interest rate reduction		12.28		%
Weighted-average term extension (in months)		39
Payment delay duration (in months)(2)		6 to 12
Principal forgiven		$	—

Loan receivables that have been modified are subject to the same requirements for the accrual of expected credit loss over their expected remaining lives as for unmodified loans. The allowance for credit losses incorporates modeling of historical loss data and thereby captures the higher risk associated with modified loans to borrowers experiencing financial difficulty based on their account attributes.

The following table presents the payment status and period-end amortized cost basis, by class of loan receivable, of loans that were modified on or after January 1, 2023 to borrowers experiencing financial difficulty (dollars in millions):(1)


	Current		30-89 Days Delinquent		90 or More Days Delinquent
At December 31, 2023
Credit card loans	$	1,882	$	252	$	196
Private student loans	147		18		8
Personal loans	109		20		4
Total	$	2,138	$	290	$	208

The following table presents the defaulted amount and period-end amortized cost basis, by modification category, of loans that defaulted during the period and were modified on or after January 1, 2023 through the end of the reporting period to borrowers experiencing financial difficulty (dollars in millions):




















	For the Twelve Months Ended December 31, 2023
		Defaulted Amount(1)		Period-end Amortized Cost Basis
Credit card loans
Interest rate reduction		$	383	$	210
Total credit card loans		$	383	$	210

Private student loans
Payment delay		$	5	$	4
Interest rate reduction and payment delay		20		17
Total private student loans		$	25	$	21

Personal loans
Payment delay		$	2	$	1
Term extension		4		2
Interest rate reduction and payment delay		10		2
Interest rate reduction and term extension		7		3
Total personal loans		$	23	$	8

(1)For purposes of this disclosure, a loan is considered to be defaulted when it is 60 days or more delinquent at month end and has advanced two stages of delinquency subsequent to modification. Loans that entered a modification program in any stage of delinquency but did not experience a further payment default are included in the payment status table above but are not counted as defaulted for purposes of this disclosure.

Prior to the adoption of ASU 2022-02, the Company considered a modified loan in which a concession had been granted to the borrower to be a TDR based generally on the cumulative length of the concession period and credit quality of the borrower. Due to differences between the legacy TDR requirements and current loan modification disclosure requirements, information presented in the disclosures below is not directly comparable to the disclosures under the current guidance.

To evaluate the primary financial effects that resulted from credit card loans entering into a TDR program during the year ended December 31, 2022, the Company quantified the amount by which interest and fees were reduced during the periods. During the year ended December 31, 2022, the Company forgave approximately $29 million of interest and fees resulting from accounts entering into a credit card loan TDR program.

The following table provides information on loans that entered a TDR program during the period (dollars in millions):


	For the Year Ended December 31, 2022
		Number of Accounts	Balances
Accounts that entered a TDR program during the period
Credit card loans(1)		237,339	$	1,545
Private student loans		6,841	$	127
Personal loans		6,303	$	86

The following table presents the carrying value of loans that experienced a default during the period that had been modified in a TDR during the 15 months preceding the end of each period (dollars in millions):


	For the Year Ended December 31, 2022
		Number of Accounts	Aggregated Outstanding Balances Upon Default
TDRs that subsequently defaulted
Credit card loans(1)(2)		28,231	$	141
Private student loans(3)		1,145	$	22
Personal loans(2)		1,140	$	20

(2)For credit card loans and personal loans, a customer defaults from a loan modification program after either two consecutive missed payments or at charge-off, depending on the program. The outstanding balance upon default is generally the loan balance at the end of the month prior to default.

Of the account balances that defaulted as shown above for the year ended December 31, 2022, approximately 65%, of the total balances were charged off at the end of the month in which they defaulted from a TDR program. For the year ended December 31, 2022, for accounts that had defaulted from a TDR program and had not been subsequently charged off, the balances were included in the allowance for credit loss analysis.

The Company originated credit card loans throughout the U.S. The geographic distribution of the Company’s credit card loan receivables was as follows (dollars in millions):


	December 31,
	2023				2022
	$		%		$		%
Texas	$	9,150	8.9	%	$	7,996	8.9	%
California	9,078		8.9		7,888		8.7
Florida	7,496		7.3		6,465		7.2
New York	6,538		6.4		5,895		6.5
Illinois	5,012		4.9		4,528		5.0
Pennsylvania	4,985		4.9		4,484		5.0
Ohio	4,188		4.1		3,759		4.2
New Jersey	3,499		3.4		3,127		3.5
Georgia	3,294		3.2		2,849		3.2
Michigan	2,821		2.8		2,521		2.8
Other	46,198		45.2		40,601		45.0
Total credit card loans	$	102,259	100.0	%	$	90,113	100.0	%

The Company originated private student, personal and other loans throughout the U.S. The geographic distribution of private student, personal and other loan receivables was as follows (dollars in millions):


	December 31,
	2023				2022
	$		%		$		%
California	$	2,449	9.4	%	$	2,015	9.2	%
New York	2,074		7.9		1,900		8.6
Texas	1,987		7.6		1,595		7.2
Florida	1,607		6.1		1,248		5.7
Pennsylvania	1,567		6.0		1,431		6.5
Illinois	1,405		5.4		1,247		5.7
New Jersey	1,285		4.9		1,114		5.1
Ohio	975		3.7		849		3.9
Georgia	851		3.3		647		3.0
Virginia	778		3.0		654		2.8
Other	11,172		42.7		9,307		42.3
Total other loans	$	26,150	100.0	%	$	22,007	100.0	%