Latest Data from U.S. Issuers Show Improvement in Credit Card Payments
The latest reports from the six biggest U.S. credit card companies, including JPMorgan Chase, Bank of America and Discover, show late credit card payments decreased in May for all issuers, although they remained at historically high levels. The reports showed mixed results for the issuers’ charged-off rates.
JPMorgan Chase’s 30-day delinquency rate dropped to 4.22 percent in May, down from 4.4 percent in April and the lowest since last July, the New York-based bank reported in a regulatory filing. The issuer charged off 8.95 percent of its credit card card loans in May, down from 9.03 percent in April. Charged-off are credit card loans issuers do not expect to be repaid.
Bank of America had the highest charge-off rate – 13.33 percent, up from 12.71 percent in April and even above the 13.25 percent write-off rate it reported in January. The bank has had among the highest charge-off rates in the industry since at least last July. Its delinquency rate, however dropped to 6.39 percent in May from 6.73 percent in April.
Discover’s charge-offs also rose in May – 8.82 percent, up from 8.42 percent in April. The bank’s 30-day delinquency rate decreased to 4.95 percent from 5.20 percent in April. Discover and its bigger rival, American Express, both issue credit cards and process transactions.
(Via WSJ.com)
