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Credit Card eZine - News and Articles about Credit Cards

Credit Card eZine - News and Articles about Credit Cards

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


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.

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[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.
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[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.
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[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.
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