US banks' credit-card businesses enjoying 'Goldilocks moment'

US banks seem to be having a Goldilocks moment with their credit card portfolios.

Customers are also finally borrowing again after spending the past few years diligently paying off balances. That comes just as the Federal Reserve is raising interest rates, bolstering the net interest income these banks collect. But because consumers are still sitting on so much cash, delinquencies remain freakishly low.

At Bank of America Corp., which reported third-quarter earnings Monday, spending on cards soared 13%, and the average outstanding balances were up 12.4%. The company added 1.25 million new credit card accounts in the quarter, the most of any quarter in at least the last year.

That's down to 10.07% compared to a year ago, though it's up slightly from the 9.95% at the end of the second quarter.

For more on Bank of America third-quarter earnings, click here for our TOPLive blog.