Defaulted credit card accounts drop for five major lenders
Instances of charged off credit card debt fell for nearly every one of the six largest lenders in the U.S., while 30-day delinquencies dropped across the board.
Bank of America was the only one of the top six credit card lenders that saw a negative change in rates of either delinquency or default during the month of April, according to a report from Reuters. The company, which typically has higher rates of both types of troubled accounts than its competitors, saw charge offs – those accounts so behind on payments they must be stricken from the lender’s records – rise to 8.25 percent from 8.18 percent.
Citi observed the largest decline in its delinquency rate, which fell to 3.87 percent from 4.21 percent, the report said. Meanwhile, Capital One’s charge offs dipped to 4.97 percent from 5.87 percent, the largest improvement in that category.
Instances of delinquent and defaulted credit card accounts have dropped significantly over the last year both because consumers got a better handle on their bill payments, and also due to past defaults preventing riskier borrowers from having access to accounts.