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Consumers Are Handling Credit Card Debt Better
Posted by: RateAPY Bank Rates News
November 26th, 2009
Credit card delinquencies fell 6% from the second quarter of 2009 to the third quarter of 2009, according to the credit reporting agency TransUnion. Historically, delinquencies have increased between the second and third quarters of the year, so the timing of this improvement is significant. One possible reason for fewer delinquencies may be that consumers are worried about banks revoking their credit cards. Banks have been reducing credit limits and increasing credit card fees all year. Credit card users may feel that if they don’t shape up they will be asked to ship out.
Charge-Offs Are Down
A charge-off occurs when a consumer stops paying an account. After several months, the bank may consider these noncollectable debts, which are “charged off.” Bank of America said in a regulatory filing that its charge-off rate fell to 13.22% in October from 14.25% in September. JPMorgan, Capital One, and Discover Financial Services also reported a decline in their charge-off rates.
- Posted in Bank News | Credit Cards | Interest Rates
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Posted by: Business Credit Card Interest Rates Are Lowest « RateAPY - Your Online Source for the Best Bank Rates
Posted: November 30, 2009
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