Credit card defaults rise in September
Capital One Financial Corp, the third-largest U.S. issuer of visa cards, released a new report that suggests a growing number of Americans are suffering from credit card debt.
According to the report, the company’s credit-card defaults rose slightly in September.
Overall the annualized net charge-off rate, a figure for tracking debts the company believes will go uncollected, rose month-over-month in September from 8.19 to 8.38 percent. During the same period, the delinquency rate of the company’s U.S. auto loans declined slightly from 4.56 percent to 4.53, Reuters reports.
Auto-finance charge-offs increased from 2.75 to 2.77 percent. Internationally, loan rates dropped from 8.04 to 7.95 percent, says the news provider.
Capital One is expected to release its overall third-quarter results on Thursday. Analysts anticipate a 22 percent jump in overall earnings for the credit giant, according to a separate report by Dow Jones Newswires.
The report pointed to high unemployment and weak economic growth as potential factors for higher rates and credit card delinquency. The rise in the net charge-off rate means more people are relying on credit to make purchases without have the collateral to make monthly payments.