Credit Cards
recommended by
our experts

Get Cards
Credit Card eZine - News and Articles about Credit Cards

Credit Card eZine - News and Articles about Credit Cards

Get even more information on credit cards? Read our Credit Card eZine. The section is regularly updated by our specialists. Learn all the financial tricks. Know the pitfalls and hidden bonuses. Find out how to transfer balances and accumulate points. We will tell you about the latest offers on the market.Get your credit card education and make the most out of your plastic.

Late payments on cards have dropped to levels seen prior to recession

2011-06-30

Now there has been a steady drop in late payments. The rates have dropped to the same levels that were seen prior to recession. Even the defaults have come really close to the standard levels, as per the reports from six of the top issuers in the nation.

The payment rates for the month of May showed that there was a dip in the late payments where levels had reached the pre-recession levels. This was evident from a set of regulatory filings recently.

American Express which is one of the leading issuers has stated that the late payments that were more than 30 days overdue is far better now than what it was prior to the economic downturn. It is at 1.6% on the balances for the month of May.

JP Morgan Chase reported 2.66% and this was last seen during mid-2006. Even Discover Financial Services had posted 2.88% and it is the best rate since the last four years.

These late payments are otherwise known as delinquencies and this is an indicator of the future financial health of the industry.

After a period of 180 days, banks typically write off these balances on credit card balances as uncollectible.

In the month of May, AmEx had the lowest default rates. It was at 3.2% of balances annualized. Capital One and Discover were also next in line at around 4.84% and 4.82% respectively.

Michael R. Dean, MD at Fitch Ratings stated that he expected delinquencies to drop further.



Share Opinion:
del.icio.us   digg   Furl   YahooMyWeb   Propeller   Reddit  
Comments not found
 

If you have something to say, please leave your comments below.

Your Name: *
Your Email:
Your Comment: *

Enter Number from Picture: * number

* - Required Fields Add Comment
[Sunday, December 18, 2011]
Chase Bank recently announced the redesign of its Visa credit cards - allowing more space on the front for the Chase logo. This new design is in trial mode currently but Visa has pans to roll out its new design to other financial institutions in order to increase the branding and logo visibility of the individual issuing banks.
Comments (0)
[Friday, October 28, 2011]
Debit and credit: they`re both plastic, why not consolidate them? The Cinncinati-based Fifth Third Bank, is the first to offer the DuoMasterCard which consolidates both a checking and a credit card account into one card.
Comments (0)
[Wednesday, September 21, 2011]
It really pays when you do the right thing. Take credit cards for instance, having a clean credit profile really does help. Those who managed to maintain a squeaky clean credit report during the recession can now jump with joy, as they will get some of the best deals from credit card issuers.
Comments (0)
* The CreditCardSpecialist.com webpage is a free service and an information resource for credit cards and financial products and services available to eligible United States consumers. CreditCardSpecialist.com does not offer any warranties and is not a direct service. There are no guarantees for approval or offers when applying for a credit card. Please refer to the application if you would like more information on each credit card. When you click "Apply" for a particular credit card, please take the time to review the terms and conditions of the product/service at the issuer's website. All logos on the CreditCardSpecialist.com website are property of their respective owners.
We do our best to maintain the information accurate at CreditCardSpecialist.com. However, all the credit cards information is subject to change and presented without warranty. See the up to date credit card terms and conditions on the secured credit card application page. Note that CreditCardSpecialist.com may be compensated by credit card issuers when visitors apply for a credit card through the links on this website.
CreditCardSpecialist.com, an independent, advertising-supported website, receives compensation from the companies whose offers appear on the site. This compensation impacts where and how credit products appear on our site, including, for example, the product listing order in which they may appear on separate pages. CreditCardSpecialist.com does not present or review all available credit or financial offers.
Disclosure: Not an access card.