Capital One credit card payment trends edge higher in August after 3 months of improvement

Capital One August credit card writedowns edge up

NEW YORK — Capital One Financial’s rate of uncollectable balances edged up August, after three months of consumers showing progress paying credit card bills.

The company’s net U.S. card charge-offs edged up to $368 million, or 8.19 percent, in August, from $366.8 million, or 8.1 percent of total balances, in July, Capital One said in a regulatory filing.

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.

August was the first month the charge-off rate rose since it peaked at 10.87 percent in April. Through the first several months of the year, credit card companies wrote off record amounts of loans.

On the positive side, Capital One Financial Corp. said its rate of loans 30 days or more past due fell a fraction in August to 4.56 percent — from 4.66 percent in July and 4.79 percent in June.

That improvement may indicate that August’s charge-off increase was not the beginning of a broader trend.

The charge-off rate for international cards in August was 7.62 percent, down from 7.86 percent in July. The international delinquency rate eased further to 5.94 percent from 6.03 percent in June.

In Capital One’s auto loan unit, the charge-off rate rose to 2.75 percent in August, from 2.6 percent in July. The August auto loan delinquency rate also rose, to 8.04 percent, from 7.72 percent in July.

Company shares edged up 7 cents to $38.66 in midday trading.