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Credit Card Deliquencies Drop For Fourth Straight Month

Posted by: RateAPY Bank Rates News
May 17th, 2010

The largest credit card companies issued regulatory findings Monday, among them: Capital One, Discover, Bank of America, and JPMorgan Chase. All reported lower delinquency rates for the month of April, evidence that the consumer may finally be recovering from the Great Recession. Delinquency rates have now declined for four straight months. A lower delinquency rate is good news, because how consumers are managing credit card debt is a key indicator of their financial health.

Charge-offs–credit card debt the issuer does not expect to be repaid–may be another story. Although late payments have fallen, charge-off levels remain the same. Analysts are saying that with unemployment now at 10%, it may be some time before charge-offs subside. This may be why, despite what seems like good news about delinquencies, financial stocks have taken a beating.

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