This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Card Defaults, Late Payments Still Dropping

Stocks in this article: BAC AXP C COF DFS JPM

NEW YORK ( LowCards.com) -- Credit card defaults and late payments dropped again in April, falling to levels last seen in 2008. Five of the six top credit card companies reported delinquencies and defaults dropped in April to multiyear lows.

This is another sign of recovery for credit card issuers.

After the economic downturn began in 2008, lenders drastically cut credit limits on millions of cardholders, canceled accounts on their riskiest borrowers and tightened approval requirements for new customers. Many cardholders have also steadily paid down credit card balances. These changes are all playing a factor in these declining default and late payment figures.

Bank of America was the only major credit card issuer that reported a rising default rate in April.
  • Bank of America (BAC - Get Report) was the only major issuer that reported a rising default rate in April. The bank's annualized charge-off rate, which reflects uncollectible balances, was 8.25%, up from 8.18% in March. Bank of America's charge-off rate peaked at 14.53% in August 2009. Late payments dropped to 4.52% of balances annualized (the lowest level for the bank since mid-2006), down from 4.82% in March.
  • American Express (AXP - Get Report) still leads the industry with the lowest rate of charge-offs and defaults. Charge-offs were 3.5% of balances on an annualized basis for April, down from 3.7% in March. Late payments were 1.7% in April, down from 1.8% in March.
  • Citi's (C - Get Report) default rate was 7.85% of balances on an annualized basis, down from 7.89% in March. Late payments fell to 3.87% in April, down from 4.21% in March.
  • Capital One (COF - Get Report) defaults dropped to 4.97% annualized. That was down from 5.87% in March. Late payments dropped to 3.41% of balances, down from 3.59% in March.
  • Discover's (DFS - Get Report) charge-off rate was 5.02% of balances in April, down from 5.18% in March. The delinquency rate dropped to 3.15% in April, down from 3.42% in March.
  • JPMorgan Chase (JPM - Get Report) defaults were 5.6% in April, down from 6.02% in March. Late payments dropped to 2.86%, down from 3.08% in March.

-- Reported by Bill Hardekopf of LowCards.com.

Bill Hardekopf is chief executive of LowCards.com, which compares and rates more than 1,000 credit cards. He is the co-author of "The Credit Card Guidebook."

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,387.21 -291.49 -1.65%
S&P 500 2,029.55 -27.54 -1.34%
NASDAQ 4,681.4970 -90.2660 -1.89%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs