Credit card payments improve in July, major issuers see fewer defaults and late payments
By APMonday, August 16, 2010
Credit card payments continue to improve in July
DES MOINES, Iowa — Consumers continue to better manage their credit card payments, with fewer customers in July defaulting or making late payments compared with the previous month.
On-time payments have been on an upward trend over the last several months for many major card issuers.
Discover Financial Services, Capital One Financial Corp., JPMorgan Chase & Co. and Bank of America Corp. on Monday all reported declines in July charge-off rates — those unpaid balances they have given up on collecting.
Capital One’s improvement led the group, with its net U.S. card charge-offs falling to 8.1 percent of total balances in July from 9.3 percent in June.
Card companies typically write off loans after they’re 180 days past due, the point at which it’s assumed the balances won’t be collected.
