On-time credit card payments less common in September
The number of consumers who were able to pay their credit card bills on time dropped for five of the nation’s six largest credit card lenders in September.
American Express, Bank of America, Capital One Financial, Discover Financial Services and JPMorgan Chase all experienced greater instances of consumer credit card delinquency during September, fulfilling a shift many analysts expected, according to a report from the Associated Press. However, in most cases the increases were extremely slight, often at just fractions of a percentage point.
Meanwhile, experts aren’t sure how severe the new correction in credit card delinquency and default trends will be given that there are fewer credit card accounts open across the country now than there were prior to the recession, when rounds of mass charge offs were required for all major lenders, the report said.
Only in the last few months have lenders turned to once again extending credit cards to subprime borrowers once again, a practice that was common prior to the recession but became rare once credit conditions tightened.